PM Shehbaz Establishes Committee to Review LPG Policy Amid Price Surge

ISLAMABAD: In response to escalating liquefied petroleum gas (LPG) prices following recent supply disruptions, Prime Minister Shehbaz Sharif has formed an eight-member ministerial committee tasked with reviewing proposed reforms to the LPG policy put forth by the Petroleum Division.

The proposed reforms aim to transfer the responsibility of LPG imports and price-setting from the Oil and Gas Regulatory Authority (Ogra) to state-owned enterprises (SOEs). These SOEs are expected to implement import-parity pricing based on Saudi Aramco rates and actual import costs, a move that has sparked concerns among industry stakeholders.

Stakeholders, including marketing companies and dealers, have voiced their objections to the new policy, arguing that it was finalized without adequate consultation. They warn that the limited experience of SOEs in LPG imports, coupled with a proposed levy on locally produced LPG, could lead to higher prices for consumers and call for a more significant role for the private sector in the LPG market.

The committee’s formation comes as the new LPG policy was set to take effect within a week, prompting urgent discussions among stakeholders. The committee is expected to engage with various industry representatives to address these concerns and potentially revise the policy before its implementation.