Exorbitant Increase in LPG Prices Cumbersome for Household and Industry. Iran Border Trade Closure Increased Miseries of Consumers. Urgent Supply Measures and Regulatory Enforcement is a Must: Mian Zahid Hussain

KARACHI (October 21, 2026): President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance, Chairman of the National Business Group Pakistan, Chairman of the FPCCI Policy Advisory Board, and former Provincial IT Minister, Mian Zahid Hussain, has expressed concern over LPG prices reaching Rs500–600 per kilogram in various markets across the country, against OGRA’s notified October price of Rs279.34 per kilogram. He said Pakistan was already facing disruptions and uncertainty in imported LNG supplies amidst the current geopolitical crisis. Although the arrival of one LNG cargo in October had provided some relief, uninterrupted supplies throughout winter remained essential. Disruptions in pipeline gas supplies force households and commercial consumers to turn to LPG, making shortages and excessive prices of this alternative fuel a further threat to energy security. He said the substantial gap between notified and market prices required immediate improvements in supply, distribution and regulatory oversight.

Mian Zahid Hussain said the notified LPG price increased by approximately 8 percent, from Rs258.65 per kilogram in September to Rs279.34 in October. In comparison, market prices of Rs500-600 per kilogram were approximately 79-114.8 percent above the October notified rate. He said this disparity could not be explained by the monthly increase in the official price alone. Supply-chain disruptions, import and transportation costs, and margins charged at different stages of distribution required separate scrutiny. He said the notified price of an 11.8-kilogram domestic cylinder had increased by only Rs244.14, from Rs3,052.09 in September to Rs3,296.23 in October. However, the same quantity cost between Rs5,900 and Rs7,080 at market rates of Rs500–600 per kilogram. Consumers were therefore paying approximately Rs2,600–3,800 extra per cylinder. For low-income households, this additional expenditure comes at the expense of food, children’s education or medical treatment, while higher consumption during winter would further increase the burden.

Mian Zahid Hussain said that, according to the Planning Commission’s Annual Plan 2025–26, domestic LPG supply during FY2024–25 stood at 730,000 tonnes, equivalent to an average of 2,000 tonnes per day, while imports totalled 1.5 million tonnes. Imports accounted for approximately 67 percent of the combined volume, highlighting their importance to domestic availability. He said disruption along a major trading route, an increase in international prices or transportation delays could quickly affect Pakistan’s LPG supply chain. Mian Zahid Hussain said the September 19 suspension of border trade with Iran had affected LPG availability, while regional conflict and risks to maritime transport could also make alternative imports more expensive. He noted that OGRA’s 2023–24 report also placed daily LPG sales in Pakistan at approximately 5,000 tonnes. He urged the relevant authorities to arrange secure clearance of lawful cargo in accordance with security requirements and ensure alternative supplies. Effective coordination among the Petroleum Division, Ministry of Commerce, OGRA and Customs could reduce unnecessary delays and additional costs without compromising national security.

Mian Zahid Hussain said limited LNG availability would put pressure on industrial production and electricity supply, while interruptions in pipeline gas increased household and commercial dependence on LPG. However, LPG itself was becoming increasingly expensive and difficult to obtain. Shortages and excessive price increases would raise operating costs for restaurants, tandoors, bakeries and other small businesses, with these costs subsequently passed on through higher food and service prices. Meanwhile, additional household spending on cooking and heating fuel would reduce the amount available for other essential purchases. The continuing energy crisis could therefore increase inflation while weakening business activity.

Mian Zahid Hussain said OGRA should ensure effective compliance with daily stock-reporting requirements for LPG marketing companies and strengthen monitoring of supplies at ports, storage facilities, filling plants and in transit. Where evidence of artificial shortages, hoarding or profiteering emerge, action should be taken in accordance with the law. The allocation and distribution of locally produced LPG must also remain transparent and competitive so that import difficulties could not be used to justify excessive margins on domestic supplies.

Mian Zahid Hussain urged the government to protect consumers through transparent scrutiny of actual import, insurance and transportation costs within the pricing mechanism. He called for a coordinated winter supply plan covering demand for LNG, domestic gas and LPG, available stocks and required imports. Timely deliveries to remote areas and targeted relief for deserving households should form part of this response. He said reliable energy supplies at affordable prices were essential to protecting purchasing power, sustaining small businesses and keeping the country’s industrial wheel running.