Federal Minister for Petroleum Ali Pervaiz Malik informed the National Assembly on 26 October that the government is drafting a policy to protect low-income households from increasing liquefied petroleum gas prices. Prime Minister Shehbaz Sharif conducted between two and three meetings to tackle the issues surrounding LPG pricing.
The Oil and Gas Regulatory Authority (OGRA) has already notified a rate of Rs280 for LPG produced within the country. No specific policy exists at this time for imported LPG.
The proposed framework will evaluate supply challenges at land borders and explore importing alternative supplies from Saudi Arabia and Oman. Locally produced LPG prices are tied to an international contract price established by Saudi Aramco.
This international benchmark has climbed to $705 per tonne. Officials are currently reviewing extra costs linked to LPG supplies.
Pakistan's gas availability is currently impacted by the suspension of approximately 900 million cubic feet per day of supplies from Qatar. The government is rationing the gas that remains available.
A mechanism is being developed to ensure fair competition and provide subsidised fuel to vulnerable households.
