LPG price twice the official rate in open market

• Ogra notifies about Rs15 per kg increase in gas price
• Association warns of strike from Nov 16 over new LPG policy

ISLAMABAD: As the government again notified an increase in the price of liquefied petroleum gas (LPG) for November, its price in the open market is twice as high as the official rate amid a shortage of LPG due to the US-Iran war.

In a notification on Saturday, the Oil and Gas Regulatory Authority (Ogra) notified Rs294,075 per tonne for November compared to Rs279,341 in the previous month. Following the increase, the official retail rate of an 11.8 kg domestic cylinder of LPG is Rs3,470, up by Rs173. The official LPG rate is Rs294 per kilogramme.

The oil and gas regulator said that the LPG producer price was linked with Saudi Aramco-CP and the US dollar exchange rate. It added that compared to the previous month, Saudi Aramco-CP had increased by 6.47 per cent, while the average dollar exchange rate had slightly decreased by 0.12pc, resulting in an increase in the LPG consumer price by Rs14.73 per kg.

In the open market, LPG is selling for up to Rs630 per kg, while the company-operated franchises are charging up to Rs400 per kg, with many warning that the crisis would compound due to the gas shortage.

LPG Distributors Association of Pakistan Chairman Irfan Khokhar said that the situation was serious because of the Iran border closure. He said at least 70 per cent of LPG was imported from Iran, while only 30pc was locally produced. “The government has to make serious efforts to control market manipulations,” Mr Khokhar added.

On the other hand, LPG marketing companies thre­atened to shut down their businesses from Nov 16 if the private sector was sidelined in the upcoming LPG policy. Pakistan LPG Marketers Association Cha­irman Ali Haider warned that they will observe a strike from Nov 16 if the government implemented the policy. He said the government should not reverse the deregulation of LPG, adding that the gas was in short supply due to the Iran border closure.

“Out of around 1.3 million tonnes, only around 225,000 is imported from the Gulf, and that too has been mainly imported by the private sector,” he said, adding that the ProGas terminal at Port Qasim was under the control of the Sui Southern Gas Company which “imported LPG around seven months back”. The association also wrote a letter to Petroleum Minister Ali Pervaiz Malik, stating the draft policy sent to the prime minister had no input from the private sector. The association called for the complete deregulation of the LPG sector.

It said the 2016 LPG policy imposed Rs4,669 per tonne petroleum development levy on locally produced LPG. This was imposed to provide subsidies to the state-owned entities such as the PSO, Parco, and SSGC to import LPG during winters and in any emergency, like the current scenario. “Despite billions of rupees collected in terms of PDL through this formula, the state-owned entities have failed to import LPG during these days,” Mr Haider alleged.

Published in Dawn, November 1st, 2026