PSO, Parco and SSGC LPG await revised pricing formula to resume imports

PSO, Parco and SSGC LPG are holding off on LPG imports until the government approves a revised pricing mechanism, Profit by Pakistan Today reported on October 30. The companies say current pricing does not fully cover the cost of imported supplies, while officials are concerned about winter availability.

Ogra and government officials have prepared a new formula with industry input and expect it to go to the prime minister for approval. The companies are looking for it to take effect by November 1; PSO and Parco, which have not imported LPG before, have also been instructed to join the import effort.

The proposal would base prices more directly on imported costs, including freight, rather than the existing Saudi Aramco-linked benchmark. Industry estimates put possible Karachi prices at Rs400 to Rs450 per kilogramme, while reported retail rates already range from Rs600 in Lahore to over Rs800 in Gilgit-Baltistan.