LPG Sold at Nearly 2x Higher OGRA Price Before US-Iran Ceasefire

The recent surge in liquefied petroleum gas (LPG) prices may have cost consumers between Rs. 60 billion and Rs. 70 billion, with households continuing to purchase LPG at more than double the official rate, according to estimates by the Pakistan LPG Distributors Association.

The association said Pakistan consumes more than 6 million kilograms of LPG daily, while the Oil and Gas Regulatory Authority fixed the commodity’s price at Rs. 309 per kilogram for June.

However, consumers across the country reportedly paid more than Rs. 600 per kilogram amid supply concerns triggered by the Gulf War.

Industry representatives alleged that LPG marketing companies and plant operators sold the fuel at inflated prices, forcing retailers to pass on higher costs to consumers. Retailers claimed they were purchasing LPG from plants at around Rs. 550 per kilogram and could not sell it at OGRA’s notified rate without incurring losses.

Distributors also alleged that some suppliers refused to issue receipts, making it difficult to document transactions and challenge excessive pricing. They argued that enforcement efforts primarily targeted retailers, while companies and plant operators responsible for higher wholesale prices escaped scrutiny.

Based on current consumption levels, the association estimates consumers paid nearly Rs. 1.8 billion extra each day by purchasing LPG at prices roughly Rs. 300 above the official rate. Over a month, this translates into additional consumer spending exceeding Rs. 54 billion.

Repeated attempts to seek comments from OGRA spokespersons and senior enforcement officials did not receive a response, according to the association.