ISLAMABAD: The Petroleum Division has submitted a set of measures to improve the LPG supply position in the market. One of these measures is the disposal of locally produced LPG through a transparent and competitive process, while ensuring the availability of the product in far-flung and hilly areas in accordance with the LPG Policy 2016.
The proposed mechanism aims to promote fair competition, enhance transparency in the allocation of locally produced LPG and ensure that upstream enterprises obtain a fair return on their resources. It is intended to provide equitable opportunities to all market participants rather than allowing the benefits of locally produced LPG to remain concentrated amongst limited players.
The matter is currently being pursued through the courts, and the Government reserves the right to exercise all available legal options in accordance with the law.
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The Government remains committed to pursuing measures that improve market efficiency, ensure a fair and transparent business environment, and protect the interests of consumers.
Public welfare remains Prime Minister Shehbaz Sharif Government’s foremost priority. The objective is to improve the availability and distribution of LPG while ensuring that consumers in far-flung and hilly areas continue to have access to the product in line with the LPG Policy 2016. The initiative should therefore be viewed in its larger context: as a measure to promote transparency, fair competition and improved market supply, with due regard to the applicable legal framework and the interests of the public.
Petroleum Minister Ali Pervaiz Malik had stated in Lahore last week that a summary had been submitted to the federal cabinet to facilitate the import of LPG from international markets so that consumers could be protected from shortages in an emergency.
He said comprehensive arrangements were being made to meet the country’s gas requirements during the winter months of December, January and February. Prime Minister Shehbaz Sharif and the federal cabinet had already been briefed on gas demand, availability and potential challenges, he added.
Regarding LPG prices, Malik said the rates were determined by the Oil and Gas Regulatory Authority (OGRA), with Saudi Aramco’s monthly Contract Price (CP) serving as a key component of the pricing mechanism. He said the government was taking steps to ensure adequate LPG supplies during winter when demand typically rises.
Copyright Business Recorder, 2026