The Pakistan LPG Marketers Association (PLPGMA) has urged the Federal Government to immediately intervene to stop the sealing of licensed LPG plants, warning that continued enforcement actions could trigger supply disruptions, increase prices and adversely affect millions of consumers across Pakistan.
The Association expressed serious concern over the recent enforcement operations carried out by the Oil and Gas Regulatory Authority (OGRA) and other authorities in Lahore and other major cities, where licensed LPG plants are reportedly being raided, harassed and sealed despite operating under valid licences. PLPGMA maintained that these actions are disrupting legitimate businesses at a time when the industry’s core pricing issues remain unresolved.
PLPGMA stated that the existing LPG pricing framework has become commercially unworkable as marketing and distribution margins have not been revised since 2018, despite significant increases in operational costs, freight charges and other supply chain expenses. The Association also highlighted that locally produced and imported LPG continue to be regulated under a uniform pricing mechanism despite their substantially different cost structures.
Chairman PLPGMA, Ahsan Butt, said the current enforcePLPGMA calls for govt intervention to protect LPG supply chain
ment campaign is addressing the consequences of an outdated pricing system rather than resolving its underlying structural flaws.
“Instead of addressing the weaknesses in the pricing framework, enforcement actions are disrupting legitimate businesses and weakening the LPG supply chain. Continued sealing of licensed plants will reduce market supply, increase pressure on consumers and contribute to price instability,” he said.
PLPGMA emphasized that licensed operators should not be penalized for operating under an outdated regulatory framework and warned that if enforcement actions continue, any resulting shortages or market disruptions would be a direct consequence of policy shortcomings rather than the industry’s unwillingness to serve consumers.
The Association called upon the Federal Minister for Petroleum and relevant authorities to immediately halt the sealing of licensed LPG plants, reopen facilities closed due to the pricing dispute, initiate an urgent revision of LPG marketing and distribution margins, introduce separate pricing mechanisms for locally produced and imported LPG, and convene an immediate meeting with PLPGMA to develop a sustainable solution before the situation escalates into a nationwide supply crisis.
PLPGMA reiterated that timely policy-level engagement is essential to ensure uninterrupted LPG availability, protect consumer interests and restore confidence across the country’s LPG value chain. “The situation requires urgent and decisive intervention. Any further delay will disrupt supplies, harm consumers and further destabilize the LPG market,” Ahsan Butt concluded.