Pakistan's government told the National Assembly on 26 October that it is preparing a policy to protect low-income households from rising liquefied petroleum gas (LPG) prices, with subsidised fuel for vulnerable consumers while keeping the market competitive. Federal Petroleum Minister Ali Pervaiz Malik said Prime Minister Shehbaz Sharif had already held two or three meetings on the issue and that progress would be visible soon.

Why prices have risen

The minister said the Oil and Gas Regulatory Authority's notified rate of Rs280 per kilogram applied to locally produced LPG, while no policy was currently in place for imported LPG. He linked part of the pressure to the international benchmark set by Saudi Aramco, which had risen to $705 per tonne, and said the government was examining additional supply costs and looking at alternative imports from Oman and Saudi Arabia. Reporting of the same sitting also cited the closure of the Pakistan-Iran border as a main reason prices had risen, and members told the house that LPG was selling for Rs700 to Rs800 per kilogram in remote and northern areas, against the official Rs280 rate.

What happens next

The government said a comprehensive policy would be presented soon, aiming to give subsidised fuel to vulnerable households while preserving fair competition. The policy itself has not yet been published in final form, so its eligibility rules, subsidy level and start date remain to be confirmed.

Sources: Associated Press of Pakistan and Dawn / Express Tribune reporting via KhabarWire.