Petroleum Division proposes shifting LPG pricing powers from OGRA to PSO, SSGC LPG Limited

The Petroleum Division has proposed giving Pakistan State Oil (PSO) and SSGC LPG Limited a role in setting domestic liquefied petroleum gas prices, replacing price notifications by the Oil and Gas Regulatory Authority from November 1. Profit by Pakistan Today reported that an October 27 memorandum put the plan before the federal cabinet, after an earlier draft went to the Cabinet Committee on Energy on September 30. Under the proposed import parity mechanism, the companies would calculate a benchmark from their monthly import costs and publish landed-cost details online.

The proposal also envisages a fund for subsidies to eligible Benazir Income Support Programme households, funded by the difference between import-linked and domestic producer prices. It would reserve 10% of locally produced LPG for state-owned marketers, auction the other 90% monthly at a minimum 5% below the import parity benchmark, and permit 75% of a state-owned company's auction share to go to Pakistan Petroleum Gas Limited. Industry representatives have warned of potential conflicts of interest, pricing safeguards and consumer cost concerns; the framework still requires cabinet approval.