Prime Minister Shehbaz Sharif announced on Wednesday a set of measures to overhaul Pakistan’s liquefied petroleum gas (LPG) market. He said the government had broken the long-standing hold of what he called the ‘LPG mafia’ and set up a competitive framework meant to bring openness to supply and pricing.
Shehbaz also said the government had prevented a planned increase of Rs15 per litre in petrol prices. According to him, oil refineries agreed to share their windfall profits instead of passing the extra cost on to consumers. He made these remarks while addressing a federal cabinet meeting.
New competitive mechanism for LPG imports and auctions
Under the new arrangement, companies will be permitted to import LPG and sell it on competitive terms. Locally produced gas will be offered through open auctions divided into smaller lots. Officials told the meeting that four state-owned entities are taking part in the scheme, alongside private importers.
Also read: Pakistan LPG prices rise by Rs 14.73 per kg as OGRA revises · Refineries seek withdrawal of new petrol pricing mechanism
- Pakistan State Oil (PSO)
- The Sui Southern Gas Company’s LPG subsidiary
- Pakistan LNG Limited
- PARCO Pearl Gas
Petroleum Minister Ali Pervez Malik told the cabinet that the country needs roughly 7,000 tonnes of LPG each day, and that about 2,500 tonnes of that is produced at home. He said the first auction of domestic LPG is due next week and will be held under camera surveillance.
Shehbaz said proceeds from the domestic LPG auctions would be deposited into the national exchequer and could later be used to offer relief to consumers. He instructed authorities to ensure the system remains transparent. He also thanked Deputy Prime Minister and Foreign Minister Ishaq Dar, along with the energy and finance ministers, for their work.
Fuel subsidy programme and action against petrol pumps
The prime minister said the government is monitoring its fuel subsidy programme, which will run until at least the end of December. So far, he said, 15 million people have benefited, and around Rs28 billion has been spent. Assuming an average household of five people, he estimated that about 75 million people had gained indirectly.
Shehbaz said the Intelligence Bureau is keeping watch over the programme and that action would be taken against petrol pumps found to be involved in irregularities. He ordered the petroleum minister to close such outlets and impose heavy penalties on them.
Winter energy supply and regional diplomacy
Turning to the coming winter, Shehbaz said the government is holding frequent meetings to keep LNG, LPG, petrol and other energy supplies flowing, despite difficulties affecting maritime routes. He pledged that the government would work to meet national energy needs, keep power plants running and limit the effect of rising international prices.
The prime minister also said Pakistan is continuing its diplomatic efforts to ease regional tensions. He pointed to recent visits to Tehran by Pakistani delegations, including one led by Chief of Defence Forces Field Marshal Syed Asim Munir. He also cited visits by Saudi Arabia’s defence minister and Turkish intelligence chief Ibrahim Kalin. Discussions, he said, focused on lowering tensions in the region and strengthening cooperation under the trilateral arrangement between Pakistan, Saudi Arabia and Turkiye.
