Consumers in Peshawar and Lahore are paying far above the government-set rate for liquefied petroleum gas (LPG), as authorities have taken no visible enforcement action.
Vendors in the provincial capital of KP are charging between Rs380 and Rs420 per kilogram, while sellers in the Fort City are demanding Rs450 to Rs460 per kilogram currently.
The official government-set rate for LPG stands at Rs304 per kilogram, meaning consumers are paying up to fifty percent more in open markets today.
Reports confirm similar pricing violations are being recorded in other major Pakistani cities, suggesting the problem extends well beyond these two regional centres.
Gas Tariff Hikes Loom
Two state-run gas utilities in Pakistan seek steep tariff hikes for FY 2026‑27, as regulators weigh reducing allowances for unaccounted‑for‑gas losses charged to consumers.
As per the media reports, OGRA has scheduled public hearings in Lahore and Karachi on May 12 and 13 to review petitions from SNGPL and SSGCL for tariff adjustments.
SNGPL requests raising its prescribed tariff to Rs. 2,084 per mmBtu from Rs. 1,853, including LNG diversion costs, while SSGCL seeks steeper increases.
Hearings follow the postponement in April amid Middle East crisis-linked gas price uncertainty, with OGRA legally bound to finalize determinations 40 days before the June 30 deadline.
IMF commitments require timely biannual gas tariff notifications to contain circular debt, now exceeding Rs. 3 trillion, underscoring the urgency of the upcoming determinations of the regulator.
Consultant proposes gradual UFG allowance cuts, lowering benchmarks to 5.5% by FY 2031, with additional allowances for SNGPL and SSGCL reflecting local operational challenges.
