Prime Minister Shehbaz Sharif has formed an eight-member ministerial committee to review proposed reforms to Pakistan’s liquefied petroleum gas (LPG) policy, following a reform package submitted by the Petroleum Division, it was reported on October 31, 2026.
What happened?
The committee, headed by the petroleum minister, has been given one month to examine the proposed reforms, cylinder standards and the local LPG model, and to submit a comprehensive report to the prime minister. Its members include the ministers for economic affairs and information, the prime minister’s adviser on interprovincial coordination, the special assistant on energy, the petroleum secretary, the director general of liquefied gases and the head of the Government Relations Unit.
Key details
- Under the proposed reforms, state-owned enterprises — including Pakistan State Oil (PSO), the Sui companies, Pak-Arab Refinery Company (PARCO) and Pakistan LNG — would enter the LPG import business and take over monthly price-setting from the Oil and Gas Regulatory Authority (OGRA).
- Monthly pricing would be retained, but prices would be set on an import-parity basis linked to Saudi Aramco’s free-on-board contract prices, plus actual premiums, freight, insurance, incidental expenses and import taxes.
- OGRA would stop issuing monthly LPG price notifications for local and imported LPG under the proposal.
- Ten percent of domestic LPG production would be allocated to state marketers at producer prices to supply remote areas, including Gilgit-Baltistan and other northern areas, while the remaining 90 percent would be auctioned monthly to prequalified bottlers.
- Margins for LPG marketing and importing companies would rise from Rs35,000 to a minimum of Rs50,000 per tonne as an inflation adjustment.
- The review comes as market prices for a standard 11.57kg LPG cylinder have climbed to between Rs6,000 and Rs7,200, against OGRA’s notified benchmark of Rs3,296, amid supply disruptions including halted trade at the Iranian border and reduced sea shipments.
What it means for people in Pakistan
For households that rely on LPG for cooking and heating, the committee’s report will help decide who imports LPG and how its monthly price is set — a change that could affect what families pay for a cylinder. People in remote areas could also benefit from the proposed allocation of domestic production to state marketers, while dealers and bottlers will be watching for the final framework after the one-month review.
