Prime Minister Shehbaz Sharif has transferred the authority to determine liquefied petroleum gas (LPG) prices from the Oil and Gas Regulatory Authority (OGRA) to Pakistan State Oil (PSO) and Sui Southern Gas Pipelines Limited (SSGPL). The two state-owned companies are now responsible for setting national LPG cylinder prices.
Following the prime minister’s directives, Petroleum Minister Ali Pervaiz Malik assigned PSO and SSGPL full authority to determine LPG prices across the country, replacing the role previously held by OGRA.
The government expects that these new pricing arrangements, combined with additional supplies, will bring down LPG prices significantly across the country. Orders have already been placed for imported LPG shipments, with vessels expected to arrive in Pakistan next week.
This decision follows the federal cabinet's approval of a major LPG sector overhaul. The overhaul introduces a deregulated pricing system to replace OGRA’s monthly price notifications with import parity based pricing determined by state-owned companies.
Under the new reforms, PSO, Pakistan LNG Limited, SSGC LPG, and PARCO Pearl Gas will re-enter the import market to increase competition and secure supplies. Indigenous LPG producers will be required to allocate 10 percent of production to state-owned companies for distribution in remote and underserved areas, while the remaining 90 percent will be sold through transparent monthly auctions.
The government also intends to establish a dedicated fund to subsidize LPG at an expected Rs. 300 to Rs. 350 per kilogram for households eligible under the Benazir Income Support Programme (BISP).
Additional measures included in the plan involve tighter quality testing, restrictions on unlicensed LPG filling and transportation, stronger safety standards, and action against cartelization and undocumented imports.
