The federal government on Tuesday unveiled a broad-based LPG policy and directed four state-owned enterprises to re-enter the liquefied petroleum gas import business, in a move aimed at easing supply constraints and addressing soaring prices. The announcement was made at a time when households are facing rising energy costs and when winter demand for LPG is expected to increase sharply.
Petroleum Minister Ali Pervaiz Malik told a news conference at PTV headquarters that the federal cabinet had approved the broad-based LPG policy. Under the policy, the four state-owned enterprises will return to LPG imports through government-to-government and business-to-business arrangements. The intention, as presented, is to improve supply at a moment when constraints in the market have contributed to higher prices for consumers.
A central element of the announcement concerned the price at which LPG should reach vulnerable consumers. The prime minister directed that LPG be provided to deserving and vulnerable consumers at Rs300 to Rs350 per kilogram, using eligibility criteria linked to the Benazir Income Support Programme. That direction places a clear emphasis on protecting lower-income households, even as the wider market faces upward pressure on prices.
At the same time, the government indicated that it will resort to purchases on the spot market to meet surging winter LPG demand. That indication was reported by Business Recorder. Spot market purchases carry their own risks, because prices on the spot market can move quickly. According to the report, spot premiums of USD 300 to USD 400 per tonne over the Saudi Aramco Contract Price could push retail LPG to Rs450 to Rs500 per kilogram. That figure stands in contrast to the lower range directed for vulnerable consumers, and it illustrates the tension between market prices and the goal of affordability.
The scale of the change in international prices was also set out in the reporting. Aramco’s contract price was USD 756 per tonne, compared with USD 540 per tonne in March 2026. That rise of more than USD 200 per tonne in a matter of months helps to explain why domestic prices have come under pressure and why the government is now looking at both state-led imports and spot purchases to secure supply for the winter months.
Alongside the LPG announcement, there was also news on electricity costs. The power division sought an estimated increase of Rs2 to Rs4 per unit in electricity purchase costs for the next calendar year. The projected annual power purchase cost ranges from Rs3.4 trillion to Rs3.8 trillion. Those figures point to further pressure on power prices in the period ahead, adding to the broader energy cost picture facing consumers and businesses.
The combination of the two announcements on the same day is significant. LPG and electricity are both central to household energy budgets, and movement in both at once will be felt widely. The government’s LPG policy is presented as a response to supply and price pressures, while the power division’s request reflects the cost of purchasing electricity for the coming year. Together, they suggest that energy affordability will remain a major policy question through the winter and into the next calendar year.
What happens next will depend on how the LPG policy is implemented in practice. The return of state-owned enterprises to imports, the use of government-to-government and business-to-business arrangements, and any spot market purchases will all need to translate into actual supplies reaching the market. The test for vulnerable consumers will be whether the directed price range of Rs300 to Rs350 per kilogram is delivered in practice, and how the eligibility criteria are applied.
For the wider market, the question will be where retail prices settle once winter demand arrives and once the higher international contract price feeds through. The reported possibility of Rs450 to Rs500 per kilogram on the basis of spot premiums shows the range of outcomes that market participants are considering. The minister’s assurance of a fair price, but not one below market realities, suggests that consumers should not expect prices to be held artificially low regardless of international conditions.
Source: Dawn, 4 November 2026; Business Recorder, 4 November 2026
