As part of the proposed overhaul of Pakistan’s liquefied petroleum gas (LPG) sector, the government has outlined measures to curb undocumented imports, tighten quality controls and improve safety across the supply chain.
The Cabinet summary raises concerns about undocumented LPG imports, inadequate quality testing and unsafe handling practices.
It estimates that more than half of the country’s LPG supply enters through land crossings, where testing facilities are currently unavailable. OGRA and HDIP inspections at Taftan have reportedly found substandard product.
The document refers to repeated explosions caused by decanting at border crossings without adequate safety infrastructure, resulting in more than 60 fatalities since 2020. It also estimates that 56 percent of LPG bowsers are unlicensed.
Undocumented LPG inflows evade sales tax, Petroleum Levy and customs duty, while the government has been unable to accurately capture the volumes entering through informal channels.
The proposed guidelines direct OGRA to introduce quality testing at land entry points through HDIP by June 30, 2027. OGRA will also be required to audit licensees’ sales volumes against their licensed storage, cylinder circulation and filling capacity, with penalties, including licence cancellation, for non-compliance.
Cylinder filling will be restricted to licensed plants, while bowser-to-bowser transfers will be prohibited. Cylinder standards will be strengthened through embossing and barcoding, a ban on unregistered empty cylinders and periodic requalification of manufacturers.
The guidelines also propose establishing NEPSA satellite offices and HDIP/PCSIR laboratories at land entry points by June 30, 2027. After that date, LPG volumes will not be allowed to enter through any port without spot testing.
The government also proposes amendments to Sections 285 and 286 of the Pakistan Penal Code to increase penalties and make relevant offences non-bailable. OGRA and FBR Customs will jointly work to measure and control undocumented inflows.
Around 2,000 LPG bowsers are currently operating in the country, of which approximately 800 are stated to comply with OGRA/NEPSA standards. Enforcement action against non-compliant bowsers is proposed to remain suspended until June 30, 2027, allowing stakeholders time to transition towards compliance.
The proposed framework requires OGRA to strengthen health, safety and environmental enforcement throughout the supply chain through regular audits, penalties, suspension of licences and cancellation of licences in case of violations.
OGRA may also convene product review meetings to assess supply-chain conditions, import plans and winter stock requirements, and may direct state-owned importers and marketers to arrange specific volumes to maintain the demand-supply balance.
The Petroleum Division has emphasised that uninterrupted LPG imports are particularly important ahead of winter, when limited piped gas availability could place additional pressure on households dependent on cylinders. The summary notes that the current geopolitical situation has increased vulnerabilities in energy supply chains, making reliable imports essential to avoid shortages and potential public distress.
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