Liquefied petroleum gas (LPG) prices have surged to Rs750 per kilogram in Pakistan’s northern areas, prompting the government to consider introducing a daily pricing mechanism to curb hoarding and address sharp price fluctuations ahead of winter.
Under the proposed mechanism, the government may replace the existing monthly LPG price-setting system with daily price adjustments. The move aims to ensure more frequent revisions in line with market conditions and prevent artificial price hikes during the winter season, when demand for gas typically increases.
The proposed change could also push the price of an LPG cylinder above Rs10,000, raising concerns about the affordability of the fuel for households that rely on it for cooking and heating.
LPG prices have climbed significantly in northern areas, where many households depend on the fuel because of limited access to natural gas. The reported rate of Rs750 per kilogram has added to concerns about the financial burden on consumers as colder weather approaches.
Meanwhile, LPG importers have called for a review of the existing pricing formula, arguing that the current monthly adjustment system does not adequately reflect changing market conditions.
Importers have suggested that prices should be revised weekly or daily instead of once a month to improve responsiveness to fluctuations in supply and demand.
The government is considering the proposal as part of efforts to address pricing concerns and discourage hoarding, particularly during periods of increased winter consumption.
LPG is widely used across Pakistan, especially in areas where piped natural gas is unavailable. Demand generally rises during winter, making prices and supply a major concern for consumers.
However, the proposed daily pricing mechanism is still under consideration, and no final decision on its implementation has been announced in the provided information.
If introduced, the new system could bring more frequent price adjustments for LPG consumers, although its impact on retail prices will depend on market conditions, supply costs and the effectiveness of measures to prevent hoarding.