OGRA Sidelined as PSO, SSGCL Get Authority to Set LPG Prices

Prime Minister Shehbaz Sharif has transferred the authority to determine liquefied petroleum gas (LPG) rates from the Oil and Gas Regulatory Authority (OGRA) to Pakistan State Oil (PSO) and Sui Southern Gas Pipelines Limited (SSGPL), giving the two state owned businesses responsibility.

Key points

• Under the reforms, PSO, Pakistan LNG Limited, SSGC LPG and PARCO Pearl Gas will re-enter the import market to growth competition and secure supplies.
• Orders have been placed for imported LPG shipments, with vessels carrying the fuel projected to arrive in Pakistan next week.
• The administration will additionally establish a dedicated fund to subsidize LPG at an projected Rs.
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After the prime minister's directives, Petroleum Minister Ali Pervaiz Malik has assigned PSO and SSGPL full authority to determine LPG costs nationwide, replacing OGRA's role in the pricing process. LPG Shipments Projected To Arrive Next Week.

Orders have been placed for imported LPG shipments, with vessels carrying the fuel projected to arrive in Pakistan next week. The administration expects the further supplies and new pricing arrangement to bring down LPG rates significantly nationwide. LPG Rates Jump 80% in Pakistan.

Meanwhile, the decision comes after Pakistan's federal cabinet approval of a major LPG sector overhaul introducing a deregulated pricing system to replace OGRA's monthly rate notifications with import parity based pricing determined by state owned firms. Under the reforms, PSO, Pakistan LNG Limited, SSGC LPG and PARCO Pearl Gas will re-enter the import market to growth competition and secure supplies.

While the remaining 90 percent will be sold through transparent monthly auctions, indigenous LPG producers will allocate 10 percent of production to state owned firms for distribution in remote and underserved areas.

Notably, the administration will additionally establish a dedicated fund to subsidize LPG at an projected Rs. 300 to Rs. 350 per kilogram for households eligible under the Benazir Income Backing Programme (BISP). Extra measures include tighter quality testing, restrictions on unlicensed LPG filling and transportation, stronger safety standards, and action against cartelization and undocumented imports. Stay Connected with ProPakistani.

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For now, OGRA Sidelined as PSO, SSGCL Get Authority to Set LPG Prices remains the part of the story worth watching, and further updates are likely as more details are confirmed.