Pakistan LPG importers warn of 'serious' shortage, seek 'sustainable' pricing

The LPG Importers Association of Pakistan (LPGIAP) has issued a stark warning of an impending "serious" nationwide shortage of liquefied petroleum gas (LPG) within the next two to three days, urging immediate government intervention. In a letter addressed to Petroleum Minister Ali Pervaiz Malik, LPGIAP Chairman Sheikh Mukarram Waheed cautioned that failure to resolve the issue promptly could lead to "significant disruptions" in the country's LPG supply chain.

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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 association has called for an emergency meeting involving all relevant stakeholders to address pressing concerns regarding the current LPG pricing mechanism. LPGIAP argues that the 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. Factors such as international prices, freight charges, exchange rate fluctuations, port handling fees, inland transportation, and financing costs have driven import expenses "well above the notified selling price," forcing importers to absorb substantial financial losses on each shipment.

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

Several importers and storage operators have reportedly reduced or suspended their operations due to mounting losses. The association cautioned that if the current pricing mechanism remains unchanged, more import terminals and LPG facilities might be compelled to shut down, jeopardizing uninterrupted supplies across Pakistan. The letter implores the government to treat this matter as a national priority and convene an urgent meeting to develop a "transparent, practical and sustainable" pricing framework that accurately reflects the cost of imported LPG.

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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.

LPGIAP stressed that prompt government action is crucial for safeguarding the nation's energy security, maintaining market stability, and preventing hardship for millions of households, commercial users, and industries reliant on LPG as a primary fuel source. Ogra had previously reduced the consumer price of LPG by Rs67.33 per kg for July, setting the official rate at Rs241.43 per kg from July 1. The price of an 11.8kg domestic cylinder was also reduced by Rs794.05 to Rs2,848.91, attributed to a decline in international LPG prices. However, LPG retailers and consumers in various cities report that the official reduction has not translated into market relief, with LPG being sold at significantly higher prices, ranging from Rs480 to Rs550 per kg.

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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.