LPG associations across Pakistan have announced a nationwide strike starting November 16. The decision comes amid growing opposition to the government’s proposed LPG pricing formula.
Industry representatives have warned that the new pricing mechanism could increase LPG prices by 25 to 30 percent. They say the proposed changes could significantly raise costs for consumers and businesses.
Ali Haider, Senior Vice Chairman of the LPG Marketers Association, confirmed the decision. He said all associations rejected the proposed formula during an emergency meeting.
According to Haider, LPG sales will stop across the country from November 16. However, the associations have given the government 15 days to address their concerns.
The industry has urged authorities to reconsider the proposed pricing mechanism. It has warned that a failure to meet its demands could disrupt supplies nationwide.
Why LPG Associations Are Opposing the New Pricing Formula
Industry representatives believe the proposed formula will increase the cost of LPG imports and local supplies. Haider said the new mechanism could raise overall prices by 25 to 30 percent.
He explained that approximately 90 percent of Pakistan’s LPG supply is transported through road tankers. The proposed pricing changes could also increase costs for 30 percent of locally produced gas.
Currently, LPG prices are linked to the Saudi Aramco Contract Price. However, the Petroleum Division has proposed a different pricing benchmark.
Under the proposed system, prices would be linked to Pakistan State Oil’s landed import cost. Industry representatives have raised concerns about the financial impact of this change.
The government is also considering broader reforms in the LPG sector. These proposals would allow state-owned companies to import LPG and determine prices.
The proposed changes could also reduce OGRA’s role in the pricing mechanism. Following the industry’s objections, Prime Minister Shehbaz Sharif formed a ministerial committee.
The committee will review the proposed changes to the country’s LPG policy.
Expected Impact on Consumers
The proposed pricing formula could increase household expenses if implemented. The Oil and Gas Regulatory Authority (OGRA) has already notified November’s official consumer price.
According to the notified rate, an 11.8-kilogram LPG cylinder costs Rs. 3,470.09. This represents an increase of Rs. 173.86 compared with the previous price.
A further increase of 25 to 30 percent could make cylinders considerably more expensive. Based on the current official rate, prices could reach approximately Rs. 4,340 to Rs. 4,510.
This would add around Rs. 870 to Rs. 1,040 to the cost of each cylinder. Such an increase could create additional financial pressure on households.
Consumers in several cities are already facing higher market prices. LPG was reportedly selling above Rs. 500 per kilogram in Lahore last week.
Nationwide LPG Supply Could Face Disruption
The announced strike could affect LPG availability across Pakistan. Industry representatives have warned that sales will remain suspended if their demands are not addressed.
A nationwide shutdown could create further supply problems for households and commercial users. The situation may become more difficult if existing disagreements continue.
The government and industry associations have 15 days to reach an agreement. Any resolution before November 16 could help prevent the planned nationwide strike.
In other related news also read New Government Policy Could Increase LPG Prices
Consumers and businesses will be closely watching developments surrounding the proposed pricing policy.
