Key Takeaways
- LPG traders have given the government a three-day ultimatum to address their concerns.
- Traders warn of a nationwide shutdown if demands are not met, with prices crossing Rs. 500 per kg.
- Industry leaders accuse regulators and enforcement agencies of failing to support them.
Pakistan’s liquefied petroleum gas (LPG) industry has issued an ultimatum to the government, demanding immediate action on pricing, security, and regulatory policies. The warning was delivered at a conference in Lahore attended by over 1,000 representatives from various segments of the LPG supply chain.
Industry leaders, including importers, marketing companies, distributors, transporters, and plant owners, accused the Oil and Gas Regulatory Authority (OGRA) and other regulators of exacerbating Pakistan’s LPG crisis. They argued that OGRA’s price notifications only reflect locally produced LPG while ignoring the higher cost of imported LPG, transportation expenses, and market conditions.
The conference, chaired by industry leader Haji Nouman Ahmed, highlighted several issues. Participants called for stricter action against manufacturers and distributors of substandard LPG cylinders, citing public safety risks. They also criticized outdated freight rates and dealer margins, noting that OGRA continues to apply local freight rates despite the import source being as far as 3,300 kilometers away in Iran.
LPG transporters reported significant losses due to harassment by authorities and security threats in Balochistan. According to industry representatives, these attacks have resulted in losses of up to Rs. 1.5 billion. The unrest in the region has pushed retail prices above Rs. 500 per kg, even though under normal conditions, LPG could be sold for around Rs. 250 per kg.
More than 450 companies are currently importing LPG into Pakistan but face unnecessary regulatory hurdles, according to industry stakeholders. They also accused enforcement agencies of conducting raids and sealing LPG plants without understanding the operations involved in the industry.
At the conclusion of the conference, stakeholders unanimously approved a Charter of Demands and formed an Industry Coordination Committee to present its recommendations to the government. Industry leaders warned that if reforms are not introduced within three days, LPG plants, retail outlets, and transport operations across the country will be shut down. Traders also plan nationwide protests until their demands are addressed.
The conference expressed concern over the impact of security issues in Balochistan on LPG prices, claiming the unrest has pushed retail prices above Rs. 500 per kg. Industry leaders emphasized that without immediate action from the government, the situation could escalate into a full-scale crisis affecting millions of households across Pakistan.
