Pakistan Develops New Policy to Regulate LPG Prices

The Ministry of Petroleum of Pakistan is developing a new regulatory policy for liquefied petroleum gas (LPG) to eliminate artificial shortages and arbitrary price increases. The proposed framework introduces a transparent monthly pricing mechanism based on an import parity price model, mirroring the systems used for other petroleum products. This model will incorporate various import-related costs, including marine insurance for maritime accidents.

As part of the strategy to stabilize the market, the government is considering shifting LPG imports from land routes to sea routes, specifically targeting supplies from Saudi Arabia and Oman. Pakistan currently imports approximately 70% of its LPG requirements, with current pricing linked to Saudi Aramco.

The new policy requires final approval from the Economic Coordination Committee and the federal Cabinet before implementation.