The Petroleum Division has proposed giving Pakistan State Oil (PSO) and SSGC LPG Limited a role in setting domestic liquefied petroleum gas prices, replacing price notifications by the Oil and Gas Regulatory Authority (OGRA)—the federal oil and gas regulator—from November 1. The latest LPG price change news centres on an October 27 memorandum placed before the federal cabinet. The framework still needs cabinet approval before it can take effect.
What the proposal would change
Under the proposed import-parity mechanism, PSO and SSGC LPG Limited would calculate a benchmark from their monthly import costs and publish landed-cost details online. That approach would transfer LPG price benchmarking away from OGRA’s regular notifications. An earlier draft of the plan had gone to the Cabinet Committee on Energy on September 30 before the October 27 memo reached the cabinet.
The package also envisages a fund to subsidise eligible households under the Benazir Income Support Programme (BISP)—the federal cash-support scheme for low-income families. That fund would be financed by the difference between import-linked prices and domestic producer prices.
How local LPG would be allocated
The plan would reserve 10% of locally produced LPG for state-owned marketers and auction the remaining 90% each month at a minimum of 5% below the import-parity benchmark. It would also allow 75% of a state-owned company’s auction share to go to Pakistan Petroleum Gas Limited. Together, those rules would reshape how locally produced gas reaches marketers if the cabinet clears the LPG rate change.
Industry concerns and next steps
Industry representatives have warned about possible conflicts of interest, the strength of pricing safeguards, and what the shift could mean for consumer costs. No final decision has been announced. Until the federal cabinet approves the framework, OGRA remains the authority that notifies domestic LPG prices under the existing system. Readers following LPG price change news should treat November 1 as the proposed start for the new arrangement, not a confirmed switch.
Timeline: what has happened so far
- September 30, 2026: An earlier draft of the plan went to the Cabinet Committee on Energy.
- October 27, 2026: A memorandum placed the proposal before the federal cabinet.
- November 1, 2026: Proposed date from which PSO and SSGC LPG Limited would replace OGRA price notifications, if approved.
Aasan alfaaz mein
Sarkar ke Petroleum Division ne proposal diya hai ke LPG ki qeemat ab OGRA ki bajaye PSO aur SSGC LPG Limited set karen. Yeh system November 1 se shuru karne ka irada hai, lekin pehle federal cabinet ki manzoori zaroori hai. Gharoon mein cylinder use karne walon ke liye asar tab clear hoga jab naya andaaz apply hoga aur subsidy rules final honge. Abhi tak koi naya notified cylinder rate is proposal se confirm nahi hua.
