Govt cuts fuel prices, unveils LPG reforms

The Pakistani government has unveiled a new LPG policy to address severe supply constraints and rising prices, directing four state-owned enterprises (SOEs) to re-enter the LPG import business. The policy aims to subsidise LPG at Rs300-350 per kg for BISP-eligible consumers, with the subsidy funded by a new account financed by the difference between the LPG import parity price and proceeds from auctions of locally produced LPG.

However, this proposed subsidised price would exceed the current maximum price set by the Oil and Gas Regulatory Authority (Ogra) of Rs294.08 per kg. Meanwhile, power costs are also expected to rise, with the National Electric Power Regulatory Authority (Nepra) presenting six scenarios for rebasing the power purchase price for January-December 2027, with next year's price projected at Rs27.31 per unit, an increase of Rs1.99 from this year's price of Rs25.32 per unit.

Brief written by urgent.news from Dawn's own syndicated text. Machine-written — may contain errors; check the original before relying on it.