LPG prices surge to Rs750 per kg in northern Pakistan

Liquefied petroleum gas (LPG) prices have surged sharply in Pakistan, reaching Rs750 per kilogram in

ISLAMABAD: Liquefied petroleum gas (LPG) prices have surged sharply in Pakistan, reaching Rs750 per kilogram in northern areas. The steep increase has raised concerns about the cost of cooking fuel, particularly as winter approaches and demand for gas is expected to rise.

The government is considering replacing the existing monthly LPG pricing system with a daily price-setting mechanism. The proposed change aims to respond more quickly to market fluctuations, prevent hoarding and limit sharp price increases during the winter season.

Under the proposed arrangement, LPG prices could be revised daily instead of remaining unchanged for an entire month. However, the government has not yet announced a final decision on introducing the new system.

The surge in prices has intensified concerns among consumers, especially in northern areas where LPG is an important source of fuel for cooking and heating. With prices reaching Rs750 per kilogram, the cost of refilling domestic cylinders has increased considerably.

There are also fears that the price of an LPG cylinder could exceed Rs10,000 if the current upward trend continues. Such an increase would place an additional financial burden on households that rely on LPG because piped natural gas is unavailable or insufficient in their areas.

LPG importers have called for a review of the existing pricing formula. They have suggested that the government consider setting prices weekly or daily instead of relying on monthly revisions.

Importers argue that a more frequent pricing mechanism could better reflect changes in market conditions and allow prices to adjust in line with fluctuations in supply and costs. The proposal has also brought renewed attention to the need for effective market monitoring to prevent artificial shortages and profiteering.

The government’s consideration of daily pricing comes as concerns grow over fuel affordability ahead of winter. LPG demand typically rises during colder months, particularly in mountainous and remote regions where access to alternative energy sources is limited.

A change in the pricing mechanism could help the government respond more quickly to market developments. However, its impact on consumers will depend on how prices are calculated, how effectively the market is regulated and whether measures are taken to curb hoarding and unjustified price increases.