Liquefied petroleum gas groups announced a nationwide strike starting from November 16, stating they will halt sales throughout Pakistan to protest the government pricing formula, which they caution could increase prices by 25 to 30 percent.
Ali Haider, Senior Vice Chairman of the LPG Marketers Association, stated that all groups rejected the formula during an emergency meeting. He stated that nationwide LPG sales would cease from November 16 if officials failed to accept their demands within 15 days.
Why the Industry is Opposing the Formula
Haider stated that the new mechanism would drive LPG prices higher by 25 to 30 percent. He stated that about 90 percent of the LPG consumed in Pakistan travels by road in tankers, and the formula would also increase the cost of 30 percent of locally manufactured gas.
The Petroleum Division suggested replacing the existing cap tied to the Saudi Aramco Contract Price with a benchmark connected to Pakistan State Oil landed import cost.
A broader group of suggested reforms would also permit state-run companies to import LPG and establish prices rather than OGRA. Prime Minister Shehbaz Sharif already established a ministerial committee to examine the suggested LPG policy modifications following industry protests.
What This Means for Consumers
OGRA notified the official consumer price for an 11.8 kg cylinder at Rs. 3,470.09 for November, rising Rs. 173.86. A 25 to 30 percent rise on that price would add approximately Rs. 870 to Rs. 1,040 per cylinder, lifting it to roughly Rs. 4,340 to Rs. 4,510.
Households already pay much higher than the official rate across many cities, with LPG trading above Rs. 500 per kg in Lahore last week. A nationwide sales halt could squeeze supply further unless the government and industry settle on an agreement before November 16.
