ISLAMABAD – Prime Minister Shehbaz Sharif has assigned the authority to determine national liquefied petroleum gas (LPG) prices to Pakistan State Oil (PSO) and Sui Southern Gas Pipeline Limited (SSGPL), replacing the previous arrangement under the Oil and Gas Regulatory Authority (OGRA).
On the prime minister’s instructions, Petroleum Minister Ali Pervaiz Malik granted the two state-owned companies exclusive authority to determine LPG prices across the country.
Meanwhile, orders for importing LPG shipments have been placed, with the vessels expected to arrive in Pakistan next week. The government hopes the incoming supplies will lead to a significant reduction in LPG prices nationwide.
However, authorities continue to face difficulties in controlling arbitrary pricing by LPG sellers, with consumers across the country paying considerably higher rates.
LPG is currently being sold at Rs570 to Rs650 per kilogram in Quetta and surrounding areas, while prices in Lahore, Rawalpindi, Multan and Sargodha range between Rs550 and Rs600 per kilogram.
In Karachi, LPG is available at Rs530 to Rs580 per kilogram, while consumers in Ghotki are paying Rs600 per kilogram.
Separately, the government has decided to introduce transparent auctions for 90 percent of locally produced LPG in an effort to regulate prices and ensure fair distribution.
Under the proposed mechanism, 10 percent of local LPG production will be reserved for government marketing companies, while the remaining 90 percent will be auctioned publicly in the presence of the media.
Each company will be allowed to obtain a maximum of 20 metric tonnes of LPG per day under the new arrangement.
Petroleum Minister Ali Pervaiz Malik said the auction system would help ensure fair distribution of LPG, strengthen the supply chain and improve energy security.
He added that the government’s objective was to ensure better availability of LPG to consumers at reasonable prices.
