Pakistan Turns to Saudi Arabia, Oman for LPG Imports to Ease Winter Supply Crunch

ISLAMABAD: Pakistan is pursuing government-to-government and commercial agreements with Saudi Arabia and Oman to import liquefied petroleum gas (LPG) as it races to offset shortages and stabilize prices before winter, Petroleum Minister Ali Pervaiz Malik announced Tuesday.

The push for alternative supplies follows the closure of two key border crossings with Iran last month, a move attributed to security concerns and anti-smuggling efforts in Balochistan. The disruption has coincided with broader regional energy instability that has driven up fuel costs.

Confirming the target markets, Malik stated that a delegation has already visited Oman, with another trip planned. He noted that a digital agreement has been signed with Oman, though he did not specify if it covers LPG volumes. Last month, Pakistan finalized a sale and purchase agreement with Oman’s OQ Trading Limited for petroleum products—a deal approved by the Economic Coordination Committee in August—as part of a strategy to diversify supply chains.

Pakistan consumes approximately 2.4 million tons of LPG annually, or roughly 6,500 to 7,000 tons daily, while domestic production covers only 2,000 to 2,500 tons. Previously, nearly half of the national demand was met via land routes from Iran, with the remainder arriving by sea through two terminals at Port Qasim in Karachi. The border closure has left a significant gap just as seasonal demand prepares to surge.

To bridge the deficit, the government has directed three state-owned entities—Pakistan State Oil (PSO), SSGC LPG Limited (SLL), and Pakistan LNG Limited (PLL)—to secure bulk imports through both government-to-government (G2G) and business-to-business (B2B) channels.

“They have been told, bulk trade, on G2G basis, and on B2B basis, you book it,” Malik told reporters. He indicated the companies have made substantial progress in negotiations, though he declined to disclose specific volumes or delivery timelines.

The minister also warned against market manipulation, vowing to prevent traders from exploiting the supply squeeze. In a bid to lower consumer costs, the government is opening the import sector to broader competition, allowing private firms to compete alongside public entities.

“Now the decision has been made that this sector will be opened for competition,” Malik said. “If you want to bring the cheapest, and give the cheapest to the public, then do it.”

The administration aims to reduce retail LPG prices to between Rs300 and Rs400 per kilogram through increased inflows and competitive pressure.

“I will be happy if they [private importers] bring it cheaper than PSO. Through competition we will try to provide it as cheap as possible,” he added.

These measures form part of a wider contingency plan for the winter months, when household reliance on both cylinder gas and piped networks peaks. Malik confirmed the government is prepared to procure expensive spot liquefied natural gas (LNG) to maintain piped supply through December and January.

“Seeing the pain of the people, and also knowing that from December and January, winter will be at its peak, at this time what we are trying to do is that even on the piped network even if we have to buy the most expensive fuel, we will bring it and try to meet it through LNG,” he said.

Pakistan’s dependence on the spot market has intensified after its long-term Qatari supplier declared force majeure amid the Middle East conflict, further complicating efforts to secure affordable energy.

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