LPG Associations Announce Strike Across Pakistan

LPG associations have confirmed a nationwide strike from November 16, saying they will stop selling LPG throughout Pakistan in protest against the government's new pricing formula.

Key points

• Ali Haider, Senior Vice Chairman of the LPG Marketers Association, remarked all associations rejected the formula at an emergency gathering.
• According to Haider, the new mechanism would push LPG rates up by 25 to 30 percent.
• OGRA has notified the official consumer cost of an 11.8 kg cylinder at Rs.
• A wider set of proposed reforms would additionally let state-owned businesses import LPG and set rates instead of OGRA.
• Households are already paying far more than the official rate in plenty of cities, with LPG selling above Rs.

Ali Haider, Senior Vice Chairman of the LPG Marketers Association, remarked all associations rejected the formula at an emergency gathering. He remarked LPG sales nationwide would stop from November 16 if the authorities did not accept their demands within 15 days. Why the Industry is Opposing the Formula.

According to Haider, the new mechanism would push LPG rates up by 25 to 30 percent. He remarked around 90 percent of the LPG employed in Pakistan moves by road in tankers, and the formula would additionally raise the cost of 30 percent of locally produced gas.

In practice, the Petroleum Division has proposed replacing the current cap based on the Saudi Aramco Contract Cost with a benchmark linked to Pakistan State Oil's landed import cost.

Meanwhile, a wider set of proposed reforms would additionally let state-owned businesses import LPG and set rates instead of OGRA. Prime Minister Shehbaz Sharif has already formed a ministerial committee to review the proposed LPG policy changes after the industry protested. What This Means for Consumers.

OGRA has notified the official consumer cost of an 11.8 kg cylinder at Rs. 3, 470.09 for November, up Rs. 173.86. A 25 to 30 percent growth on that rate would add roughly Rs. 870 to Rs. 1, 040 per cylinder, taking it to regarding Rs. 4, 340 to Rs. 4, 510.

Households are already paying far more than the official rate in plenty of cities, with LPG selling above Rs. 500 per kg in Lahore last week. A nationwide halt in sales could tighten supply further unless the administration and the industry reach an agreement before November 16. Stay Connected with ProPakistani.

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For now, LPG Associations Announce Strike Across Pakistan remains the part of the story worth watching, and further updates are likely as more details are confirmed.