Government shifts LPG pricing authority to PSO, SSGC

Government shifts LPG pricing authority to PSO, SSGC

Prime Minister Shehbaz Sharif has approved a major change in the mechanism for determining liquefied petroleum gas (LPG) prices, transferring the responsibility from the Oil and Gas Regulatory Authority (OGRA) to Pakistan State Oil (PSO) and Sui Southern Gas Company Limited (SSGC).

Acting on the prime minister’s directions, Federal Petroleum Minister Ali Pervaiz Malik has authorised PSO and SSGC to take full responsibility for determining the national price of LPG cylinders across the country.

The move aims to improve LPG supply management and bring greater stability to the domestic market. The government expects the revised pricing arrangement to help reduce prices and provide relief to consumers who rely on LPG for their daily household needs, particularly in areas without access to piped natural gas.

Meanwhile, import orders for LPG shipments have already been placed, with several gas-carrying vessels expected to reach Pakistan next week. The incoming supplies are expected to strengthen domestic availability and ease pressure on the market.

Officials anticipate that increased imports, combined with the new pricing mechanism, will lead to a significant decline in LPG prices across the country. The expected reduction could offer much-needed relief to households and commercial users facing high fuel costs.

However, the actual impact will depend on the volume of imported LPG, market supply conditions and the prices announced under the new arrangement.