LPG importers association warns of serious gas shortage in next few days, seeks 'sustainable' pricing framework

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LPG cylinders being collected to dispatch. — Dawn/File
LPG cylinders being collected to dispatch. — Dawn/File

ISLAMABAD: The LPG Importers Association of Pakistan (LPGIAP) on Sunday warned of a “serious” nationwide shortage of liquefied petroleum gas (LPG) in the next two to three days if the government did not immediately intervene.

In a letter to Petroleum Minister Ali Pervaiz Malik, LPGIAP Chairman Sheikh Mukarram Waheed warned that unless the issue was resolved without delay, the country’s LPG supply chain could face “significant disruptions”.

He called for an emergency meeting of all relevant stakeholders to address serious concerns over the current LPG pricing mechanism.

“The LPG price notified by the Oil and Gas Regulatory Authority (Ogra) on June 30, 2026, does not accurately reflect the actual landed cost of imported LPG,” the letter read.

It emphasised that the “international prices, freight charges, exchange rate fluctuations, port handling fees, inland transportation, financing costs and other operational expenses” had pushed import costs “well above the notified selling price, leaving importers to absorb heavy financial losses on every cargo”.

The letter stated that several importers and storage operators had already reduced or suspended their operations due to mounting losses.

“If the existing pricing mechanism remains unchanged, more import terminals and LPG facilities may be forced to shut down, threatening uninterrupted supplies across the country,” it cautioned.

The letter urged the government to treat the matter as a national priority and convene an emergency meeting to develop a “transparent, practical and sustainable” pricing framework that reflects the actual cost of imported LPG.

“Prompt government action is essential to safeguard the country’s energy security, maintain market stability and prevent hardship for millions of households, commercial users and industries that depend on LPG as a primary source of fuel,” it concluded.

Ogra had reduced the consumer price of LPG by Rs67.33 per kg for July, fixing the official rate at Rs241.43 per kg from July 1. The authority also reduced the price of an 11.8kg domestic cylinder by Rs794.05 to Rs2,848.91 after a decline in international LPG prices.

However, LPG retailers and consumers in Lahore, Multan and Muzaffargarh suggest that the official reduction has not translated into market relief, with LPG being sold for between Rs480 and Rs550 per kg.

LPG prices have previously reached a peak of Rs480, while its price ahead of the Middle East crisis was between Rs260 and Rs280 per kg.

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