The new LPG price in Pakistan today centres on a cabinet-approved policy that would offer liquefied petroleum gas (LPG) to Benazir Income Support Programme (BISP) eligible households at Rs300-350 per kg, while four state-owned enterprises (SOEs) return to importing to ease shortages. Petroleum Minister Ali Pervaiz Malik announced the steps at a news conference at PTV headquarters in Islamabad on Tuesday, saying the federal cabinet had cleared a broad-based LPG policy meant to restore competition and supply.
What the new policy does
Under the plan, Pakistan State Oil, Pakistan LNG Ltd, Sui Southern Gas-LPG and Parco-LPG have been directed to re-enter the LPG import business through government-to-government (G2G) and business-to-business (B2B) procurement. The minister said those firms had already received supply offers from Saudi Arabia and Oman. Private importers would remain free to bring in cargoes at lower rates and compete.
Malik linked the crunch to disruptions along the western borders that left LPG — often called the poor man’s fuel — scarce even before winter. He said unscrupulous sellers were charging Rs700-800 per kg depending on the area, far above the Oil and Gas Regulatory Authority (Ogra) November maximum of Rs295 per kg. The same briefing noted Ogra’s current notified ceiling at Rs294.08 per kg.
Expected open-market and subsidised rates
Once SOE cargoes arrive, Malik said that looking at the Saudi Contract Price (CP) and prevailing premiums, the local market price would settle around Rs450-500 per kg. That figure is still well above Ogra’s notified cap but below the black-market range he described.
For deserving and vulnerable consumers, the prime minister directed LPG at Rs300-350 per kg using BISP eligibility rules. The subsidy would sit in a new account filled by the gap between LPG import parity and proceeds from auctions of locally produced LPG from refineries and exploration and production companies — a clawback mechanism. Even that subsidised band would exceed Ogra’s Rs294.08 per kg notified maximum.
Power purchase costs also under review
Separately, a power division team presented six scenarios for rebasing the power purchase price for the January–December period and sought an estimated Rs2-4 per unit rise in electricity purchase costs for the next calendar year. That track is distinct from LPG gas prices in Pakistan, but it signals parallel pressure on household energy bills.
Timeline: what has happened so far
- November 2026: Ogra’s notified maximum LPG price stands at Rs294.08 per kg (about Rs295 per kg cited for November).
- Tuesday: Federal cabinet approves the broad LPG policy; four SOEs are told to resume imports.
- Tuesday: Minister says black-market sales reached Rs700-800 per kg in some areas and projects Rs450-500 per kg once SOE supplies begin.
- Tuesday: Prime minister directs BISP-linked subsidised LPG at Rs300-350 per kg, funded by a local-auction clawback.
- Next calendar year: Power division seeks roughly Rs2-4 per unit higher power purchase costs, with six rebasing scenarios under discussion.
Aasan alfaaz mein
Sarkar ne nayi LPG policy pass ki hai taake gas ki kami door ho. BISP wale logon ko Rs300-350 kilo milne ka plan hai. Market mein abhi kai jagah Rs700-800 kilo bik raha hai, jab ke Ogra ki November had lagbhag Rs295 hai. Agar aap BISP list mein hain to sasta cylinder milne ka intezar kar sakte hain; warna SOE supply ke baad rate Rs450-500 ke qareeb ho sakta hai.
