ISLAMABAD: Rising liquefied petroleum gas (LPG) prices are increasing the financial burden on consumers in Pakistan, with rates in the northern areas reaching Rs750 per kilogram. The government is considering introducing a daily pricing mechanism instead of the existing monthly system, amid concerns over winter demand, further price increases and potential hoarding.
In response to the rising cost of LPG, the government is reviewing the current system under which prices are determined monthly. Under the proposed mechanism, rates could be revised daily to reflect changing market conditions more closely.
The increase has raised concerns among residents of northern areas, where households rely heavily on LPG for their domestic energy needs.
LPG Cylinder Prices Could Exceed Rs10,000
The sharp rise in per-kilogram LPG prices has raised fears that the cost of household gas cylinders could increase further. If current rates persist or rise further, the price of some cylinders could exceed Rs10,000.
The government is considering changes to the pricing mechanism ahead of winter, when demand for gas typically increases. Authorities are concerned that higher seasonal demand could create opportunities for hoarding and further price increases, placing additional financial pressure on consumers.
LPG Importers Call for Changes to Pricing Formula
Meanwhile, LPG importers have called for a review of the existing pricing formula. They have suggested replacing the monthly pricing system with weekly or daily rate adjustments.
The proposed changes are intended to bring LPG prices more closely in line with prevailing market conditions. However, details of the proposed mechanism, including how it would operate and when it might be implemented, have yet to be finalised.
The extent to which the proposed changes could benefit consumers and help stabilise LPG prices will become clearer once the government reaches a decision and announces further details.
For now, consumers in the northern areas continue to face elevated LPG prices, while the proposed pricing reforms remain under consideration.
