Key Takeaways
- All Pakistan LPG Industry Organising Committee demands immediate correction in Ogra’s pricing formula.
- Committee warns of severe shortage and price spiral if issues are not addressed promptly.
- 20-member delegation met with Ogra and Petroleum Division officials to discuss sector's concerns.
The All Pakistan LPG Industry Organising Committee has called for urgent action from regulatory authorities, warning that any further delay could lead to a severe shortage of liquefied petroleum gas (LPG) in the country. In a statement issued on Tuesday, Khawaja Nouman Ahmed, central leader of the committee, highlighted the critical need for immediate correction in the pricing formula set by the Oil and Gas Regulatory Authority (Ogra).
Ahmed stated that the current formula does not accurately account for the cost of imported LPG and other associated expenses, leaving the industry unable to operate sustainably. He emphasized that addressing both pricing and security issues would bring stability to LPG prices, improve overall supply, and allow businesses linked to the sector to function without facing unnecessary raids and fines.
Participants at a recent conference flagged multiple issues, including Ogra’s flawed determination of cooking gas prices and law and order challenges affecting the transportation of LPG, particularly through Balochistan. The committee argued that these issues must be resolved on a priority basis to ensure adequate supply when seasonal demand picks up from mid-August.
Ahmed noted that LPG stocks in the country have already dropped to their lowest level due to ongoing conflicts and disruptions affecting imports. He explained that the industry has a long-standing practice of building stocks during the summer months, but this year unfavourable market conditions and non-conducive government policies have resulted in negligible imports. As a result, the sector has not been able to create the usual buffer stock ahead of the high-demand period.
The committee urged authorities to treat the matter with urgency, calling for an immediate revision of the official LPG price to reflect real import costs and concrete steps to secure highways and restore the supply route via Balochistan. Ahmed stressed that these measures are essential to enable timely imports and maintain smooth operations. He warned: 'With mid-August marking the start of the season and demand set to rise, we are running out of time.'
Following the conference, a 20-member delegation of industry representatives met with Ogra’s senior management as well as senior officials from the Petroleum Division, Ministry of Energy. The meeting aimed to discuss the sector's demands and find solutions to the current challenges.
Ahmed described the engagement with government officials as a welcome development but stressed that dialogue must now translate into concrete action. He emphasized that law and order issues affecting transportation are critical: 'Addressing these issues will directly benefit consumers by helping to bring prices down.'
The committee’s concerns about looming crisis were already raised, and Ahmed urged the authorities to act swiftly on price correction and supply security measures. He concluded: 'If the government does not act now, we could face a severe shortage and price spiral that would affect millions of households across Pakistan.'
With mid-August marking the start of the season and demand set to rise, we are running out of time.
Khawaja Nouman Ahmed, Central leader, All Pakistan LPG Industry Organising Committee
