Pakistan to import 70,000 Tonnes LPG, eyes Rs460 per kg price ahead of winter
KARACHI (TKP Report): Pakistan is preparing to import 70,000 metric tonnes of liquefied petroleum gas (LPG) through government-linked companies in an effort to strengthen domestic supplies, increase market competition and provide potential relief to consumers ahead of the winter season, with imported LPG expected to be sold at around Rs460 per kilogram against prevailing market prices of Rs530 to Rs600.
According to sources in Sui Southern Liquefied Petroleum Gas (SLL) International, a subsidiary of Sui Southern Gas Company (SSGC), the company has issued two international tenders for LPG procurement from the international spot market, involving quantities of 20,000 and 50,000 metric tonnes, respectively.
The combined procurement through these tenders amounts to 70,000 metric tonnes, marking a significant effort to increase imported LPG availability in the domestic market ahead of the seasonal rise in demand.
Sources said Pakistan State Oil (PSO) and Pak-Arab Refinery Company (PARCO) are also expected to procure LPG from the international market as part of broader efforts by government-linked entities to strengthen supplies.
According to SLL sources, vessels carrying the company’s imported LPG cargoes are expected to reach Pakistan within approximately 15 days.
Based on prevailing international market prices, the landed cost of imported LPG is estimated at around Rs450 per kilogram, sources said, adding that the companies could offer the product at approximately Rs460 per kilogram by maintaining a relatively narrow margin.
Company sources said the objective of the imports was primarily to improve domestic availability and provide relief to consumers rather than generate substantial commercial profits.
Currently, LPG is reportedly selling at Rs530 to Rs630 per kilogram in different parts of the country, placing additional financial pressure on households and small businesses, particularly in areas where natural gas is unavailable or its supply remains inadequate.
At an estimated selling price of Rs460 per kilogram, imported LPG could be available at Rs70 to Rs170 per kilogram below prevailing market rates, potentially offering meaningful relief to consumers.
The procurement comes ahead of winter, when demand for LPG generally increases due to higher heating and cooking requirements, placing additional pressure on domestic supplies.
The entry of SLL International, PSO and PARCO into international LPG procurement could also increase competition in the domestic market, where consumers have been facing elevated prices.
However, the actual impact on retail prices will depend on the volume of imported LPG reaching the market, distribution arrangements, transportation expenses and the pricing decisions of importing companies.
The planned imports represent a significant intervention in the LPG market at a time when winter fuel availability and affordability remain major concerns for consumers, particularly households dependent on LPG for their daily energy requirements.