LPG hoarding Pakistan
The government has told federal and provincial agencies to act together against suspected stockpiling that is pushing LPG prices far above the official rate.
The government has taken notice of alleged hoarding of liquefied petroleum gas (LPG) that is said to be creating an artificial shortage just before winter. Federal and provincial agencies have been told to coordinate their response.
Cylinders Selling Far Above the Official Price
Ogra has reportedly asked provincial governments and federal authorities responsible for port operations and clearance to take quick corrective steps. The move follows reports that a domestic 11.8kg cylinder is selling for around Rs5,000 in the market, nearly 50 per cent more than Ogra’s notified price of Rs3,296.
Imported LPG Not Being Lifted, Says Petroleum Division
In a letter to the Ogra chairman and the director general LPG, the Petroleum Division said multiple sources indicate that importers are bringing in LPG in line with local demand, but the cargo is not being lifted regularly from import terminals. This has raised concerns about deliberate hoarding.
According to the division, the resulting shortage has driven prices up, especially in hilly, remote and off-grid areas, where households depend heavily on LPG for their energy needs.
You Must Read This News: Senate Passes Key Electoral Reforms Package After Marathon Session
What Ogra Has Been Asked to Do
The Petroleum Division asked the regulator to:
- Prevent hoarding and ensure LPG is lifted regularly and supplied to demand centres.
- Take enforcement action so consumers can buy LPG at Ogra-notified prices.
- Give particular attention to hilly, remote and off-grid areas.
Government Plans Competitive Sale of Local LPG
In a separate statement, the Petroleum Division said it is monitoring the situation closely. It described a transparent, competitive process for disposing of locally produced LPG as a government priority.
At present, locally produced LPG is concentrated among a few market players. The government says the new mechanism would:
- Create a level playing field for the industry.
- Ease market concentration.
- Improve transparency in local LPG allocation.
- Ensure upstream companies get a fair return on their resources.
- Keep supplies available for far-flung and hilly areas, in line with LPG Policy 2016.
Litigation Slows the Process
The division acknowledged that legal challenges have held up the plan. The case is proceeding in court, and the government says it reserves the right to pursue all available legal options. It added that it remains committed to improving market efficiency, ensuring a fair business environment, and protecting consumers.
