ISLAMABAD, Oct 26 (APP):Federal Minister for Petroleum Ali Pervaiz Malik told the National Assembly on Monday that the government was preparing a policy to protect low-income households from rising liquefied petroleum gas (LPG) prices.
Responding to a Calling Attention Notice on the sharp increase in LPG prices, the minister said Prime Minister Shehbaz Sharif had already held two to three meetings to address the issue.
He said the prime minister was fully aware of the difficulties faced by consumers and that progress would be visible soon.
Ali Pervaiz Malik said the Oil and Gas Regulatory Authority’s (OGRA) notified rate of Rs280 applied to locally produced LPG, while no policy was currently in place for imported LPG.
The minister said the proposed policy would consider supply difficulties through land borders and arrangements to import alternative supplies from Oman and Saudi Arabia.
He said a comprehensive policy would be presented soon to improve supplies and provide relief to deserving consumers.
Explaining the pricing mechanism, the minister said the price of locally produced LPG was also linked to the international contract price set by Saudi Aramco.
He said the international benchmark had risen to $705 per tonne, contributing to changes in notified prices.
He said the government was also examining additional costs associated with LPG supplies, as there was no adequate mechanism to cover them.
Since locally produced and imported LPG could not be treated differently in the market, enforcement action by OGRA could create further complications, he added.
The minister said the government was working on a comprehensive mechanism to ensure fair competition in the market while providing subsidised fuel to vulnerable households.
Ali Pervaiz Malik also said Pakistan’s gas supply had been affected by the suspension of around 900 million cubic feet per day (MMCFD) of gas supplies from Qatar due to the war, forcing the government to ration available gas.
He said the government was managing available supplies through rationing and acknowledged that demand for alternative fuels would rise as winter approached.