Pakistan faces a severe liquefied petroleum gas shortage within days unless the government revises a pricing framework that importers say forces them to absorb heavy losses on every cargo, the LPG Importers Association of Pakistan warned on Sunday. Main Developments In a letter to Petroleum Minister Ali Pervaiz Malik, LPGIAP Chairman Sheikh Mukarram Waheed said the country's LPG supply chain could face “significant disruptions” in the next two to three days without immediate government intervention. He called for an emergency meeting of all relevant stakeholders to address what he described as a flawed pricing mechanism. The association criticized the official LPG price set by the Oil and Gas Regulatory Authority on June 30, 2026, arguing it does not reflect the actual landed cost of imported fuel. The letter cited “international prices, freight charges, exchange rate fluctuations, port handling fees, inland transportation, financing costs and other operational expenses” as pushing import costs “well above the notified selling price.” Read also: Iraqi PM to Visit Washington for Oil and Gas Deals Amid US-Iran Tensions Several importers and storage operators have already reduced or suspended operations due to mounting financial losses. The association warned that if the pricing mechanism remains unchanged, more terminals may shut down, threatening supplies nationwide. Background Ogra reduced the consumer price of LPG by Rs67.33 per kg for July, fixing the official rate at Rs241.43 per kg from July 1. The authority also cut the price of an 11.8kg domestic cylinder by Rs794.05 to Rs2,848.91 following a decline in international LPG prices. However, LPG retailers and consumers in Lahore, Multan and Muzaffargarh report that the official reduction has not translated into market relief. LPG is being sold for between Rs480 and Rs550 per kg—far above the notified rate. LPG prices previously peaked at Rs480 per kg, while before the Middle East crisis they stood between Rs260 and Rs280 per kg. Why It Matters A prolonged shortage would disrupt fuel supplies to millions of households, commercial users and industries that rely on LPG as a primary energy source. The gap between official and actual market prices also undermines consumer trust in regulatory pricing and could destabilize the broader energy market. The crisis highlights structural weaknesses in Pakistan's LPG import and pricing system, where importers bear the risk of international price volatility and currency fluctuations without a mechanism to pass on higher costs. If left unaddressed, the situation could worsen energy insecurity and economic hardship across the country. What's Next The LPGIAP has urged the government to treat the matter as a national priority and convene an emergency meeting to develop a “transparent, practical and sustainable” pricing framework that reflects actual import costs. No official response from the petroleum ministry has been reported as of Sunday.