The Petroleum Division and Oil and Gas Regulatory Authority (Ogra) have identified shortcomings in Pakistan’s liquefied petroleum gas pricing framework, with officials pointing to a significant gap between government-notified rates and prices prevailing in the market. The issue was discussed at a high-level meeting of the National Price Monitoring Committee, where Ogra presented an assessment of the existing pricing mechanism and its impact on the LPG market.
According to the assessment presented to the committee, the exclusion of import parity from the current LPG pricing formula is a major factor behind the difference between notified and actual market prices. Import parity is used to reflect the cost of imported supplies and related market conditions, and its absence from the existing framework has contributed to pricing differences in areas where market supply is influenced by imports.
The meeting was informed that proposed revisions to the LPG policy framework have remained pending since 2023. The Petroleum Division explained that the original policy was developed primarily for domestic LPG producers. The framework was subsequently extended to cover importers, a change that officials said contributed to distortions and pricing anomalies within the market.
The difference between notified and actual prices has been particularly visible in areas close to the Iran border. In Gwadar, LPG was reportedly being sold at Rs330 per kilogramme, while the price in Turbat had reached Rs350 per kilogramme. These market rates were significantly higher than the notified price set under the existing regulatory framework, highlighting the gap that Ogra and the Petroleum Division are now seeking to address.
Following the discussion, the National Price Monitoring Committee decided that the petroleum minister, in consultation with Ogra, would take steps to address the difference between notified LPG prices and actual market rates. The decision comes as the authorities continue to consider changes to the pricing mechanism and wider LPG policy framework. Further action is expected to focus on bringing the pricing structure closer to prevailing market conditions while addressing the distortions identified by the regulator.
The committee also discussed a separate issue concerning the quality of essential food products. Officials briefed the National Price Monitoring Committee on testing carried out by the Pakistan Council of Scientific and Industrial Research on edible oil, ghee and milk. The findings raised concerns regarding compliance with prescribed quality and safety requirements for products that are widely consumed across the country.
Testing of edible oil and ghee found elevated levels of trans-fatty acids, peroxide value and free fatty acids. The products also showed instances of non-compliance with requirements relating to Vitamin A fortification. These findings prompted the committee to examine whether existing monitoring and testing arrangements are sufficient to ensure that essential food commodities meet established standards.
Milk testing also indicated widespread non-compliance with prescribed quality standards. In particular, samples showed lower levels of protein and fat than required under the applicable standards. The committee expressed concern over the availability and quality of essential food products, particularly in rural areas, where consumers may face greater challenges in accessing products that meet required standards.
During the meeting, officials proposed the establishment of a national testing framework for essential food commodities. The proposed framework would include mandatory quarterly testing and regular reporting of test results. Such an arrangement would provide a structured mechanism for monitoring the quality of products including edible oil, ghee and milk and could allow authorities to identify non-compliance more consistently across different regions.
After deliberations, the National Price Monitoring Committee directed the Ministry of National Food Security and Research to engage with representatives and associations of ghee, edible oil and milk producers. The ministry has been instructed to discuss the findings of the Pakistan Council of Scientific and Industrial Research and pursue corrective measures within 15 days.
The ministry will also consult the ministries responsible for Commerce, Industries and Production, and Science and Technology, along with provincial and regional food authorities, the Islamabad Capital Territory administration and other relevant stakeholders. These consultations are intended to support the development of a national framework for regular quality assessment of edible oil, ghee, milk and other essential food products.
The two issues discussed by the National Price Monitoring Committee reflect separate areas of market regulation, with LPG pricing requiring changes to address differences between notified and actual rates, while food authorities are being asked to strengthen testing and quality monitoring. For LPG, the pending policy revision and the role of import parity remain central to the pricing discussion, while the food quality measures will depend on coordination among federal, provincial and industry stakeholders.
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