Govt plans new LPG pricing formula from November 1, industry warns of up to 25% hike

The government plans to change how domestic liquefied petroleum gas prices are set from November 1, 2026, linking producers’ price ceiling to Pakistan State Oil’s landed import cost rather than the Saudi Aramco Contract Price. Profit by Pakistan Today reported that Petroleum Minister Ali Pervaiz Malik outlined the proposal to industry representatives at a Tuesday meeting.

Industry participants estimate local producers could raise prices by up to 40%, with retail LPG potentially becoming 20-25% more expensive. Domestic production supplies about 35% of Pakistan’s LPG, while imports cover the remaining 65%.

Stakeholders challenged the proposal’s legality and warned that relying on PSO’s import costs could expose local prices to volatility and affect competition. They favoured deregulation instead, and raised concerns about possible over-invoicing, citing earlier allegations concerning Sui Southern Gas Company imports; the proposal has not been formally confirmed.