Govt alters LPG pricing system
ISLAMABAD: The government has altered the pricing mechanism for LPG consumers; however, a special subsidy fund will also be provided to offer relief to low-income households.
According to details, the government has made a major decision to overhaul the decades-old system for LPG pricing in the country.
Under this new decision, the Oil and Gas Regulatory Authority (OGRA) will no longer set monthly prices for LPG.
With the implementation of this new deregulation framework, LPG prices have been deregulated, allowing companies the freedom to determine prices themselves based on import costs and other associated expenses.
LPG pricing will now be determined by taking into account import costs, freight charges, insurance, and other supply chain expenditures.
The government has clarified that measures are being taken to shield low-income households from the impact of inflation; a special subsidy fund will be established to provide financial assistance to the underprivileged.
Eligible families—particularly those registered under the Benazir Income Support Programme—will be able to benefit from this subsidy.
Government officials state that this move will encourage private sector investment, thereby improving the systems for LPG importation and distribution.
However, following the removal of government oversight, both general consumers and economic experts are raising a critical question: will LPG become more affordable in the market now that OGRA is no longer setting prices, or will the dominance of private companies lead to further price hikes?
