LAHORE: Pakistan’s LPG industry has urged the government to immediately revise the official LPG pricing mechanism and restore secure transportation routes through Balochistan, warning that delays could lead to fuel shortages and higher prices as winter demand begins to rise.
In a statement issued by the LPG Industry Organising Committee, industry representatives said timely intervention by the Oil and Gas Regulatory Authority (OGRA) and the Petroleum Division is essential to ensure adequate LPG supplies ahead of the seasonal demand surge expected from mid-August.
Khawaja Nouman Ahmed, a central leader of the committee, said concerns over a potential supply crisis were highlighted during the All Pakistan LPG Conference held on July 12, where participants discussed what they described as flaws in OGRA’s LPG pricing formula and other structural challenges facing the sector.
Following the conference, a delegation of 20 industry representatives met senior officials from OGRA and the Petroleum Division to present their concerns. While Ahmed described the discussions as constructive, he stressed that they must now be translated into practical policy measures.
According to the committee, the most pressing issue is the revision of OGRA’s notified LPG price, which it says does not accurately reflect the actual cost of imported LPG and associated logistics expenses, placing financial strain on importers and distributors.
The industry also called for immediate action to improve security conditions and reopen transportation routes in Balochistan, which have been disrupted by law and order challenges, affecting the movement of LPG supplies across the country.
Industry representatives noted that LPG companies traditionally build inventories during the summer months, when demand is lower, to prepare for increased winter consumption. However, this year, limited imports—attributed to unfavorable market conditions and government policies—have prevented the sector from establishing adequate buffer stocks.
With winter demand expected to increase from mid-August, the committee urged the government to take urgent action by introducing a more realistic LPG pricing mechanism and ensuring the safe movement of LPG cargoes through Balochistan.
Ahmed warned that the window for timely imports is rapidly closing and cautioned that failure to address pricing and transportation issues could result in a severe LPG shortage, with domestic consumers bearing the greatest impact.
The committee maintained that resolving the pricing and security challenges would help stabilize LPG prices, strengthen supply chains, and enable producers, importers, and distributors to meet rising seasonal demand without disruption.
Industry representatives said they expect a formal response from the Petroleum Division and OGRA by the end of the week as preparations continue for the upcoming winter demand season.
