The federal government has unveiled a new plan for liquefied petroleum gas (LPG) ahead of winter, promising more competition, state-led imports and targeted relief for deserving families — at a time when many households are already paying far above the official price for cooking gas.
Federal Petroleum Minister Ali Pervaiz Malik announced the plan at a joint press conference with Information Minister Attaullah Tarar on Tuesday, saying the federal cabinet had approved a broad-based LPG policy. The aim, he said, is to end shortages, break the control of a few private players and make supply more transparent before winter demand peaks in December and January.
UNDER THE NEW PLAN, FOUR STATE COMPANIES WILL IMPORT LPG
The government has directed four state-owned enterprises to re-enter the LPG import business: Pakistan State Oil (PSO), Pakistan LNG Limited, Sui Southern Gas-LPG and Parco-LPG. They will arrange supplies through government-to-government and business-to-business deals, and the minister told Dawn that the companies had already received supply offers from Saudi Arabia and Oman.
At the same time, the old quota-based distribution system for locally produced LPG will be scrapped. Local supplies will instead be sold through transparent competitive auctions, in five-tonne and ten-tonne lots, so that more buyers can compete rather than a small group controlling allocations.
WHY THE CHANGE WAS NEEDED
LPG is often called the poor man's fuel, because millions of homes without piped gas depend on cylinders for cooking and heating. Pakistan uses around 2.4 million tonnes of LPG a year, and more than half of it is imported, while local production is only about 2,000 to 2,500 tonnes a day against daily consumption of roughly 6,500 to 7,000 tonnes.
Supply was already tight before winter because of disruptions along the western borders, including the closure of Iranian border crossings. As a result, some sellers have been charging Rs700 to Rs800 per kilogram in different areas — far above the Oil and Gas Regulatory Authority's (OGRA) notified maximum price of about Rs294 per kilogram for November, under which an 11.8kg domestic cylinder costs about Rs3,470.
WHAT WILL LPG COST?
The minister said international prices have pushed costs up sharply. Saudi Aramco's contract price has risen from $540 per tonne in March 2026 to $756 per tonne now, and spot-market sellers are charging a further premium of $300 to $400 per tonne. After freight and other costs, the landed price of imported LPG works out at an estimated Rs450 to Rs500 per kilogram, he said.
He was frank that the government cannot sell gas far below what it costs to import. "However, it cannot be that if the price in the international market is Rs1,000, we can provide it locally for Rs500," he said, according to Business Recorder.
For vulnerable households, however, the prime minister has directed that LPG be provided at Rs300 to Rs350 per kilogram, using the eligibility criteria of the Benazir Income Support Programme (BISP). The final subsidy mechanism — including a differential fund to support deserving consumers — is to be decided by the prime minister. The government also says it will publish monthly details of the Saudi contract price, premiums, freight and other import costs on state companies' websites, so pricing is easier to check.
WINTER GAS SUPPLY AND WHAT TO WATCH
Alongside the LPG plan, the government has promised to make every effort to keep piped gas available during the three daily mealtimes in December and January, including importing expensive liquefied natural gas (LNG) if needed, as winter demand is expected to rise by 400 to 500 million cubic feet per day.
Two things remain to be watched. First, the new arrangements are plans and directives announced on Tuesday — the reports do not say the state imports or auctions have already started, so households will judge the plan by whether cylinders actually become available at fair prices in the coming weeks. Second, LPG marketing companies have already warned of a nationwide strike from 16 November if the new pricing formula goes ahead without addressing their concerns, which could add pressure just as winter begins.
For now, the message from Islamabad is clear: the quota system is going, state companies are coming back into imports, and deserving families should get LPG at Rs300 to Rs350 — but the real test will be supply on the ground this winter.
Sources: Dawn, Business Recorder, The Express Tribune, The Nation, Profit by Pakistan Today.
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ROMAN URDU VERSION:
Hukumat ne sardiyon se pehle LPG ke liye naya plan elaan kar diya hai. Is ke tehat chaar sarkari companies — PSO, Pakistan LNG, Sui Southern Gas-LPG aur Parco-LPG — LPG import karengi, aur purana quota system khatam kar ke local LPG ki neelami (auction) ke zariye farokht hogi.
Wajah ye hai ke LPG ki kami pehle se hai: Iran border ki bandish ke baad kuch jagahon par LPG Rs700 se Rs800 per kg tak bik raha hai, jab ke OGRA ki November ki official qeemat taqreeban Rs294 per kg hai. Saudi Aramco ki qeemat March mein $540 se barh kar $756 per tonne ho gayi hai, is liye imported LPG ki lagat Rs450 se Rs500 per kg tak par sakti hai.
Mustahiq gharanon ke liye Wazir-e-Azam ne Rs300 se Rs350 per kg ki subsidised qeemat ki hidayat di hai, jo BISP ke criteria par di jayegi. Hukumat ne sardiyon mein khane ke waqton par piped gas barqarar rakhne ka bhi waada kiya hai. Ab asal imtihan ye hoga ke ye plan waqt par cylinders ki farahami mein tabdeel hota hai ya nahi.
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