LPG associations have announced a nationwide strike from November 16, saying they will stop selling LPG across Pakistan in protest against the government’s new pricing formula, which they warn could raise prices by 25 to 30 percent.
Ali Haider, Senior Vice Chairman of the LPG Marketers Association, said all associations rejected the formula at an emergency meeting. He said LPG sales across the country would stop from November 16 if the authorities did not accept their demands within 15 days.
Why the Industry is Opposing the Formula
According to Haider, the new mechanism would push LPG prices up by 25 to 30 percent. He said around 90 percent of the LPG used in Pakistan moves by road in tankers, and the formula would also raise the cost of 30 percent of locally produced gas.
The Petroleum Division has proposed replacing the current cap based on the Saudi Aramco Contract Price with a benchmark linked to Pakistan State Oil’s landed import cost.
A wider set of proposed reforms would also let state-owned companies import LPG and set prices instead of OGRA. Prime Minister Shehbaz Sharif has already formed a ministerial committee to review the proposed LPG policy changes after the industry protested.
What This Means for Consumers
OGRA has notified the official consumer price of an 11.8 kg cylinder at Rs. 3,470.09 for November, up Rs. 173.86. A 25 to 30 percent increase on that price would add roughly Rs. 870 to Rs. 1,040 per cylinder, taking it to about Rs. 4,340 to Rs. 4,510.
Households are already paying far more than the official rate in many cities, with LPG selling above Rs. 500 per kg in Lahore last week. A nationwide halt in sales could tighten supply further unless the government and the industry reach an agreement before November 16.
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