• Petroleum Division flags irregular lifting of imported LPG from terminals
• Ogra asked to ensure supplies at notified prices, particularly in remote areas

ISLAMABAD: The government has taken notice of the alleged hoarding of liquefied petroleum gas (LPG) to create an artificial shortage ahead of winter and directed all relevant federal and provincial agencies to take coordinated action.

Consequently, the Oil and Gas Regulatory Authority (Ogra) is also reported to have directed provincial governments and federal authorities concerned with port operations and clearance to take swift corrective measures. The action followed reports that LPG was being sold in the market at almost 50 per cent higher rates (Rs5,000 per 11.8kg domestic cylinder) than the Rs3,296 notified by Ogra.

“It has been reported through various sources that, although LPG importers are importing LPG as per indigenous LPG demand, the imported volumes do not appear to be regularly lifted from LPG import terminals, raising concerns regarding possible hoarding and the creation of an artificial shortage in the domestic market,” according to a Petroleum Division letter to the Ogra chairman and director general LPG.

Consequently, this created an artificial shortage in the domestic market and caused a price hike, especially in hilly, remote, and off-grid areas, where consumers rely heavily on LPG to meet their energy needs, the Petroleum Division said.

It asked Ogra, the LPG sector regulator, to take appropriate measures to prevent hoarding and ensure regular lifting and supply of LPG to demand centres. It also asked Ogra to initiate necessary enforcement action to ensure the availability of LPG to consumers at Ogra-notified prices, particularly in hilly, remote and off-grid areas.

Separately, a statement issued by the Petroleum Division assured the market that it was alive to the situation. It said a transparent mechanism for disposing of locally produced LPG through a competitive process remained a government priority, as it would ensure a level playing field for the industry and address existing market concentration, where locally produced LPG was concentrated among a few market players.

It said the Petroleum Division had submitted measures to improve the market’s supply position. One measure was to dispose of locally produced LPG through a transparent, competitive process while ensuring the product’s availability for far-flung and hilly areas, in line with the LPG Policy 2016.

The proposed mechanism aims to promote fair competition, enhance transparency in the allocation of locally produced LPG and ensure that upstream enterprises obtain a fair return on their resources. It is intended to provide equitable opportunities to all market participants rather than allowing the benefits of locally produced LPG to remain concentrated among a limited number of players, the statement said.

It added that the process was hampered by litigation, but the matter was currently being pursued through the courts, and “the government reserves the right to exercise all available legal options in accordance with the law”.

The statement said the government was committed to pursuing measures that improve market efficiency, ensure a fair and transparent business environment, and protect the interests of consumers.

Published in Dawn, October 18th, 2026