LAHORE, November 2, 2026: Liquefied petroleum gas (LPG) continues to be sold above government-notified prices in Lahore and other parts of Pakistan despite enforcement operations against retailers, leaving consumers facing higher costs as demand increases with changing weather conditions.
LPG distributors have blamed gas processing plants and an outdated pricing formula for the situation, while retailers claim that the cost of equipment confiscated during enforcement operations is ultimately being passed on to consumers.
According to figures cited from the Oil and Gas Regulatory Authority (OGRA), only 45 of Pakistan’s 411 LPG companies have domestic production quotas, while more than 300 companies purchase gas from these suppliers for resale.
The concentration of domestic LPG supplies among a limited number of companies has raised concerns about market competition and pricing. OGRA is reportedly considering replacing the existing quota system with a bidding mechanism.
Rana Abdul Jabbar, a central leader of the LPG Distributors Association, said distributors were not responsible for selling gas above official rates, arguing that high prices charged by supply plants made compliance with OGRA’s notified prices difficult.
He claimed that LPG was being supplied by plants at approximately Rs550 per kilogram, making it commercially unviable for distributors to sell at the government-fixed rate.
Abdul Jabbar also questioned OGRA’s pricing formula, saying transportation and other operating expenses were still calculated using rates established in 2016.
He argued that costs had increased significantly over the past decade, making the existing pricing mechanism impractical.
According to the association representative, distributors have submitted a revised pricing schedule to the government, and consultations have taken place on a new formula.
He expressed hope that LPG prices could be fixed between Rs400 and Rs450 per kilogram next month after the necessary legal procedures are completed.
The association also called for measures to end the dominance of a limited number of companies in the LPG supply chain and improve access to affordable gas.
Meanwhile, LPG retailers complained that enforcement teams, including the Punjab Enforcement and Regulatory Authority (PERA), were confiscating their dispensing pumps during operations.
Retailers said each pump costs between Rs70,000 and Rs75,000, and the resulting financial losses were being recovered through higher retail prices.
They questioned why enforcement operations were primarily targeting shopkeepers instead of addressing alleged pricing irregularities among major suppliers and LPG companies.
Despite continued action against retailers, consumers remain unable to purchase LPG at official rates in several markets.
The situation has highlighted concerns over the effectiveness of price enforcement, the structure of the LPG supply chain and the need for a pricing mechanism that reflects actual market costs while protecting consumers.