Govt hints at further petrol price relief, vows action on LPG rates

ISLAMABAD: The government has hinted at further relief in petroleum prices, while announcing measures to curb excessive liquefied petroleum gas (LPG) rates by introducing greater competition in the market.

Petroleum Minister Ali Pervaiz Malik said on Tuesday that Prime Minister Shehbaz Sharif had directed relevant authorities to ensure maximum relief for low-income households amid rising pressure on global energy markets.

Addressing a press conference alongside Information Minister Attaullah Tarar in Islamabad, Malik said consumers had already benefited from reductions in petrol and diesel prices, adding that further positive developments regarding petrol prices were expected.

He said the government had also prevented a possible increase in petrol prices last Friday with the cooperation of oil refineries. He assured consumers that any decline in international petroleum prices would be passed on to the public.

The petroleum minister said the government was taking steps to protect vulnerable households from rising energy costs. He added that Rs130 billion had been provided in subsidies under the public relief programme.

Discussing the LPG market, Malik said Pakistan had approximately 10 million piped gas connections, while households without access to the network depended on LPG for their daily needs.

He said domestic LPG production ranged between 2,000 and 2,500 tonnes, but certain market players were exploiting supply shortages by charging excessive rates. The government had received complaints from several cities about LPG being sold for as much as Rs800 per kilogram.

Malik said the government was working to introduce competition in the LPG sector to prevent artificial price increases and ensure affordable supplies, particularly during the winter season.

He added that authorities were also developing a mechanism to ensure transparent and fair distribution of LPG quotas, especially in remote areas. The government was exploring options to extend targeted assistance to vulnerable households through the Benazir Income Support Programme.

The minister said Pakistan imported nearly 70 per cent of its fuel requirements, making competitive procurement essential for maintaining energy security. Companies importing petroleum products would also be required to publish their prices on their websites to improve transparency.

He said regional tensions had complicated LNG imports, prompting the government to strengthen energy security arrangements and explore ways to maintain uninterrupted supplies.

Tarar said public relief remained a key priority for the prime minister throughout the energy crisis. He added that the government had introduced subsidies on petroleum products to reduce the financial burden on consumers.

The information minister said the decision to introduce competition in the LPG market was aimed at protecting consumers from excessive prices. He also described the financial contribution secured from oil refineries for public relief as an unprecedented step.

The press conference followed the government’s decision to ask oil refineries to absorb an estimated Rs15 billion monthly burden to keep petrol prices around Rs15 per litre below international market levels amid the US-Israeli war on Iran.

Malik thanked oil refineries for supporting the government’s efforts to provide relief during difficult economic conditions. He said the fuel relief initiative was targeting approximately 13 million people, alongside other measures to reduce the impact of rising energy costs.

Earlier, the federal government revised the petrol pricing mechanism, directing refineries to surrender the difference between import and ex-refinery prices as a petroleum levy. The resulting benefit would be transferred to consumers through lower petrol prices.

Under the revised mechanism, petrol’s import price would be calculated using the actual import cost of the relevant Pakistan State Oil cargo. If the latest cargo cost was unavailable, the premium, incidental expenses and customs duty of the most recently available cargo could be used.