PSO, SSGC to set LPG prices instead of OGRA

November 10, 2026 (MLN): The government has shifted the responsibility for determining liquefied petroleum gas (LPG) prices from the Oil and Gas Regulatory Authority (OGRA) to state-owned entities Pakistan State Oil (PSO) and Sui Southern Gas Company (SSGC).

This development marked a major change in the country's LPG pricing framework.

According to media reports, Prime Minister Shehbaz Sharif has directed the transfer of pricing authority, with Federal Minister for Petroleum Ali Pervaiz Malik assigning PSO and SSGC responsibility for determining LPG cylinder prices nationwide.

The development follows the federal government's approval of a broader overhaul of the LPG sector, aimed at addressing supply shortages, excessive prices and alleged market manipulation.

Under the new framework, state-owned companies will enter the LPG import market and establish a pricing benchmark based on import costs.

Imported LPG shipments have reportedly been ordered, with vessels expected to arrive in Pakistan next week.

The government anticipates that additional supplies will help bring down domestic LPG prices.

Importantly, OGRA's role in the sector is not being eliminated altogether. The regulator is expected to remain involved in monitoring the market, overseeing the auction framework and addressing issues relating to pricing practices and compliance.

The effectiveness of the new arrangement will ultimately depend on transparent import-cost disclosures, competitive auctions and effective monitoring to ensure that the proposed reforms translate into lower prices for consumers.

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