Pakistan’s liquefied petroleum gas (LPG) industry has given the federal government a three-day ultimatum to resolve longstanding concerns over pricing, security, transportation costs, and regulatory policies, warning that it will launch a nationwide strike if no action is taken.
The warning was issued during the All Pakistan LPG Industry Conference in Lahore, where more than 1,000 stakeholders—including importers, marketing companies, distributors, transporters, plant owners, and dealers—called for immediate government intervention to address what they described as growing challenges facing the sector.
Industry criticizes OGRA pricing mechanism
Conference participants argued that the Oil and Gas Regulatory Authority (OGRA) bases its official LPG price notifications primarily on locally produced LPG while failing to account for the significantly higher costs associated with imported supplies.
Industry representatives said imported LPG involves additional expenses, including freight, insurance, and transportation, which are not reflected in official pricing formulas, creating financial pressure across the supply chain.
Stakeholders also urged authorities to crack down on manufacturers and distributors of substandard LPG cylinders, warning that unsafe cylinders pose serious risks to public safety.
Transporters raise security and freight concerns
LPG transporters said existing freight rates approved by regulators are outdated and do not reflect the reality of transporting imported LPG from locations as far as 3,300 kilometers inside Iran.
They also highlighted deteriorating security conditions in Balochistan, claiming transporters have repeatedly come under attack while transporting LPG cargo.
According to industry representatives, these security incidents have caused financial losses estimated at Rs. 1.5 billion and disrupted supply chains.
Regulatory hurdles affecting imports
Industry leaders said more than 450 companies are currently importing LPG into Pakistan but continue to face what they described as unnecessary regulatory obstacles.
They also criticized enforcement agencies for conducting raids on LPG facilities and sealing plants without sufficient understanding of industry operations, arguing that such actions have created uncertainty for legitimate businesses.
Industry says unrest has driven up LPG prices
Participants claimed the worsening security situation in Balochistan has significantly increased transportation costs, pushing retail LPG prices above Rs. 500 per kilogram in some markets.
They argued that under normal operating conditions, LPG could be supplied at around Rs. 250 per kilogram, making the fuel more affordable for consumers.
Charter of demands submitted
At the conclusion of the conference, stakeholders unanimously approved a Charter of Demands and established an Industry Coordination Committee to engage with the government and present proposals for policy reforms.
The committee is seeking revisions to LPG pricing mechanisms, updated freight rates, stronger security measures for transporters, action against unsafe LPG cylinders, and a more practical regulatory framework for importers and distributors.
Nationwide strike warning
Industry leaders warned that if the government fails to respond within the next three days, LPG plants, transport operations, and retail outlets across Pakistan will suspend operations.
They also announced plans for nationwide protests, saying demonstrations will continue until their demands are addressed.
The government and OGRA have not yet issued an official response to the industry’s ultimatum.
