LPG Traders Threaten Nationwide Shutdown as Prices Cross Rs. 500 per kg

Pakistan’s liquefied petroleum gas (LPG) industry has given the government a three day ultimatum to address its concerns over pricing, security, and regulatory policies, warning that it will launch a nationwide strike next week if its demands are not met.

The warning was issued at the All Pakistan LPG Industry Conference in Lahore, where more than 1,000 representatives from across the LPG supply chain, including importers, marketing companies, distributors, transporters, and plant owners, accused the Oil and Gas Regulatory Authority (OGRA) and other regulators of worsening the country’s LPG pricing and supply crisis.

The conference, chaired by industry leader Haji Nouman Ahmed, argued that OGRA’s price notifications only reflect locally produced LPG while ignoring the higher cost of imported LPG, transportation expenses, and actual market conditions. Participants also called for action against manufacturers and distributors of substandard LPG cylinders, saying they pose a serious public safety risk.

Industry representatives also criticized what they described as outdated freight rates and dealer margins. LPG transporters said OGRA continues to apply local freight rates despite LPG being imported from locations as far as 3,300 kilometers away in Iran. They also complained of harassment by authorities and said worsening security in Balochistan has exposed LPG transporters to repeated attacks, resulting in losses of up to Rs. 1.5 billion.

Speakers said more than 450 companies are currently importing LPG into Pakistan but face unnecessary regulatory hurdles. They also accused enforcement agencies of conducting raids and sealing LPG plants without understanding industry operations.

The conference expressed concern over the impact of the security situation in Balochistan on LPG prices, claiming the unrest has pushed retail prices above Rs. 500 per kg, even though LPG could be sold for around Rs. 250 per kg under normal conditions.

At the conclusion of the conference, stakeholders unanimously approved a Charter of Demands and formed an Industry Coordination Committee to present its recommendations to the government.

Industry leaders warned that if reforms are not introduced within three days, LPG plants, retail outlets, and transport operations across the country will be shut down, with traders also planning nationwide protests until their demands are addressed.