Islamabad:Minister for Petroleum Ali Pervaiz Malik has announced that the government is committed to maintaining a steady gas supply during breakfast, lunch, and dinner hours. This assurance was given during a news conference held alongside Minister for Information and Broadcasting, Attaullah Tarar, in Islamabad.
According to Radio Pakistan, Ali Pervaiz Malik emphasized that additional LNG imports might be considered necessary to meet domestic demands, and rationing could be introduced if circumstances require. The minister outlined that Pakistan's annual LPG demand is approximately 2.4 million tonnes, with domestic production ranging between 2,000 to 2,500 tonnes per day. The shortfall is typically covered through imports, including those from the western border and sea routes.
The disruption in supplies from the western border has posed additional challenges, underscoring the need for diversification of import sources and enhancement of the country's energy infrastructure. The Prime Minister has directed the development of a comprehensive energy security framework, which includes improvements in storage facilities, refineries, and LPG import infrastructure.
The government plans to introduce competition in the LPG sector to ensure the commodity is available at the lowest possible cost to consumers. State-owned companies like Pakistan State Oil and others have been tasked with arranging bulk LPG purchases through government-to-government and business-to-business agreements. The private sector is also encouraged to import LPG to increase supply and foster competition.
To ensure transparency, all importing companies will be required to publish details of their monthly procurement costs, including Saudi Aramco's contract price, premiums, and freight charges, on their websites. The existing quota-based system for locally produced LPG will be replaced with a transparent auction mechanism, with results made public under the supervision of the relevant authorities.
Measures to protect low-income households from international price fluctuations are also part of the government's strategy. Ten percent of the quota reserved for hard areas will be distributed transparently through state-owned companies in consultation with provincial authorities. Additional revenue from the new pricing and auction mechanism will support a Price Stabilisation Fund and a Vulnerable Protection Fund for subsidized LPG provision.
The Competition Commission has been directed to prevent market manipulation and cartel formation, while OGRA will enhance transparency in its licensing and regulatory procedures. Quality and safety of LPG cylinders and transport vehicles will be monitored via a track-and-trace mechanism.
Ali Pervaiz Malik estimated that the international market price of imported LPG, including premiums and other costs, could range between 450 and 500 rupees per kilogram. The government will provide targeted relief to deserving consumers through a differential fund mechanism, with subsidized rates determined by the Prime Minister.
Attaullah Tarar highlighted that Prime Minister Shehbaz Sharif has prioritized public interest protection amidst the ongoing crisis, ensuring no additional burden is placed on the populace. The government's initiatives aim to provide relief and promote competition within the LPG sector, with profits from refineries being transferred to the public—a first in the country's history.