Prime Minister Shehbaz Sharif has constituted an eight-member ministerial committee to review proposed reforms to Pakistan’s liquefied petroleum gas policy, as concern grows over the gap between officially notified prices and what consumers actually pay in the market. The committee, headed by the petroleum minister, has been given one month to report, and its work will shape a policy that was due within a week.
LPG, commonly used in cylinders for cooking and heating in homes and businesses, is particularly important in areas without access to piped natural gas and during winter, when demand rises. For many households, the price of a cylinder directly affects monthly budgets, which is why the difference between the notified rate and market prices has become a sensitive political and economic issue.
Under the proposed reforms, responsibility for LPG import and price-setting would shift from the Oil and Gas Regulatory Authority, known as Ogra, to state-owned enterprises. Those enterprises named in the proposals include Pakistan State Oil, the Sui gas companies, Pakistan Arab Refinery Company and Pakistan LNG. The shift would represent a significant change in how the LPG market is governed, moving key decisions from an independent regulator to companies owned by the state.
A central feature of the proposed approach is import-parity pricing based on Saudi Aramco rates. Import-parity pricing links domestic prices to the cost of importing the fuel, using international benchmarks as a reference. Supporters of such a system argue that it reflects real supply costs and encourages imports when domestic supply is short. Critics, however, worry about how quickly international price movements would pass through to consumers and about the transparency of the mechanism.
The urgency of the debate is underlined by current market prices. Cylinders are reported to be selling for between Rs6,000 and Rs7,200 per 11.57 kilogram cylinder in the market, compared with the Ogra notified price of Rs3,296 for the same size. That gap, of roughly double the notified rate, raises questions about enforcement, supply, distribution costs and the extent to which the notified price reflects conditions on the ground.
Stakeholders in the LPG sector have protested about a lack of consultation on the proposed reforms. Industry participants argue that changes of this scale, affecting importers, distributors, retailers and consumers, should be developed with input from those who operate in the market daily. Their concern is that a policy designed without such input could create new bottlenecks or unintended costs, even if its stated aim is to improve supply and pricing.
The formation of a ministerial committee suggests the government wants to examine those concerns before finalising the policy. An eight-member committee headed by the petroleum minister brings together ministerial-level oversight, and the one-month reporting deadline indicates that the review is intended to be focused rather than open-ended. At the same time, the fact that the policy was due within a week means the committee’s work will take place against a tight timetable.
For consumers, the key question is whether any new policy will narrow the gap between notified and market prices and ensure reliable supply through winter. LPG shortages and price spikes have been recurring problems, particularly when imports are disrupted or when demand surges. A policy that improves import planning and clarifies who sets prices could help, but only if it is implemented effectively and monitored closely.
For the state-owned enterprises that would take on new responsibilities, the proposals would also mean new operational and financial exposure. Managing imports, handling price-setting and coordinating with distributors are complex tasks, and the success of the shift would depend on their capacity, governance and accountability arrangements. The committee is expected to weigh those practical questions alongside the broader policy design.
The coming month will therefore be important for households, businesses and the LPG industry alike. The committee’s report will show whether the government adjusts the proposals in response to stakeholder concerns, retains the core shift from Ogra to state enterprises, or adopts a different balance between regulation and state management. Until then, consumers continue to face market prices well above the notified rate, and the debate over how best to reform the LPG sector remains open.
Source: Dawn, 31 October 2026
