Pakistan faces an LPG crisis risk as importers warn the government

Importers warn of imminent crisis

According to sources, the LPG Importers Association has formally written to the government, cautioning that a supply crisis could emerge within the next two to three days without immediate intervention.

The association has also raised serious concerns over the mechanism used to determine LPG prices and has demanded an urgent meeting of all stakeholders to resolve the issue.

The warning follows a broader industry conference in Lahore, where more than 1,000 representatives from across the LPG supply chain accused OGRA and other regulators of worsening the country's pricing and supply crisis.

Industry leaders argued that the regulator's price notifications reflect only locally produced LPG while ignoring the higher cost of imported supply, transportation expenses, and actual market conditions.

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Sources said the LPG price fixed by OGRA on June 30, 2026, does not accurately reflect the real landed cost of imported gas. According to sources, the price fails to account for international rates, freight charges, and fluctuations in the exchange rate.

Sources added that costs such as port handling fees, inland transportation, and financing expenses have far exceeded the fixed selling price, leaving importers to absorb the difference.

Consumers across Punjab have separately reported buying LPG at nearly double the officially notified rate, with cylinders selling for between Rs480 and Rs550 per kilogram against an OGRA-notified price of around Rs241 per kilogram.

Mounting losses, forcing cutbacks

Sources said importers are bearing heavy financial losses on every cargo brought into the country under the current pricing structure. As a result, importers and storage operators have already begun limiting or suspending their operations, raising concerns about supply availability in the coming days.