Tackling LPG sector challenges effectively |
LIQUEFIED Petroleum Gas (LPG) plays an important role in Pakistan’s energy mix by providing a cleaner alternative to biomass fuels, particularly in areas where natural gas is unavailable. Currently, 11 LPG producers and 382 LPG marketing companies are operating in the country. Under the OGRA Ordinance 2002, the Oil and Gas Regulatory Authority (OGRA) aims to promote competition, encourage private investment, protect public interest and ensure effective regulation of the midstream and downstream petroleum sectors. It has also simplified the procedure for granting LPG licences, introducing a fast-track process once all requirements are fulfilled.
Growing investment and expansion plans by LPG marketing companies have contributed to the development of supply and distribution infrastructure across the country. These investments are not only strengthening the LPG sector but also supporting economic growth and creating employment opportunities. Pakistan’s LPG demand has been rising rapidly due to population growth and declining domestic natural gas production. According to available official estimates, the LPG market currently stands at approximately 2.4 million metric tonnes (MMT) annually, having registered a compound annual growth rate (CAGR) of 7.5 percent over the past six years. Demand is projected to grow by around 8 to 8.5 percent annually.
Recent projections indicate that LPG demand could increase from 2.4 MMT in FY 2025-26 to 4.16 MMT by FY 2032-33,........