KARACHI: Pakistan has increased the price of liquefied petroleum gas (LPG) for domestic consumers by Rs29 per kilogram or Rs344 per cylinder, according to a notification issued by the Oil and Gas Regulatory Authority, making the dealers complain the LPG rate had hit a historic high.
The government also raised petroleum prices during its last fortnightly review, though the country’s finance minister Shaukat Tareen defended the decision on Friday by saying that Pakistan was still offering the cheapest rates in the region.
According to local dealers, the government has increased the LPG price by 127 percent since April 2020 when it was only Rs90 per kilogram.
“With the current about 17 percent price hike, LPG rates are at a historically high level,” Irfan Khokhar, founding chairman of the LPG Industry Association of Pakistan, told Arab News on Saturday.
The cost of LPG for commercial use has also been increased by Rs1,322 per 45.4 kilogram cylinder, taking its cost to Rs9,248.
Local dealers said residents of remote districts of Gilgit Baltistan and Azad Kashmir would have to pay an additional amount of Rs250 per cylinder due to the recent price hike.
LPG plays an important role in Pakistan’s energy mix since it provides clean fuel to the residents the country’s remote areas who traditionally relied on wood during winter.
“LPG is used by the poor population of the country,” Khokhar said. “The recent price hike may not be beneficial for the government’s environmental initiatives since many people will once again start burning wood to keep themselves warm in the coming days.”
Environment analysts also maintained the recent increase in LPG price could reverse the trend of forestation in the country.
“LPG has been available since the mid-1990s at affordable rates,” Shahzad Anwar, an environmental analyst based in Rawalakot, told Arab News. “Many people started using it for the same reason, though they are likely to return to more traditional forms of fuel now.”
Khokhar, meanwhile, called for better management of the country’s energy resources, saying Pakistan was likely to face some problems during the next winter season.
“The government must take necessary measures on a fasttrack basis to control the rising LPG prices by reducing taxes,” he said.
He also called for the resumption of gas supply from Jamshoro Joint Venture Limited (JJVL) which has been offline for over a year.
The plant had a production capacity of about 400 tons of LPG.
The total supply of LPG in Pakistan is about one million metric tons, according to the latest Pakistan Economic Survey.
The document maintains there are about 11 LPG producers and 216 LPG marketing companies operating in the country.
LPG prices in Pakistan hit historic high after 17 percent increase — dealers
https://arab.news/vw8nq
LPG prices in Pakistan hit historic high after 17 percent increase — dealers
- Local business community says the government has increased LPG rate by 127 percent since April 2020 when it stood at Rs90 per kilogram
- The recent hike in LPG price can detrimental to Pakistan’s environmental initiatives since people in remote area may revert to traditional fuel sources
Pakistani asset management firm launches Shariah-compliant energy fund amid reforms
- Lucky Investments Limited says fund will invest across oil, gas, power and renewables
- Product targets long-term investors as Pakistan’s energy sector reforms gain traction
KARACHI: A Pakistan-based asset management company on Thursday announced the launch of a Shariah-compliant energy equity fund, seeking to tap growing investor interest in the country’s energy sector as the administration in Islamabad pursues gradual reforms to boost supply, efficiency and sustainability.
Lucky Investments Limited’s initiative comes as Pakistan’s energy sector shows signs of renewed activity, driven by rising demand, policy initiatives and an increasing shift toward renewable sources, even as the country continues to grapple with high costs and supply constraints.
Islamic finance has also expanded steadily in Pakistan, creating demand for sector-focused investment products that comply with religious principles.
The Lucky Islamic Energy Fund (LIEF) will invest primarily in Shariah-compliant, listed energy companies across oil and gas exploration and production, refining, power generation and renewable energy, the company said, with the aim of long-term capital growth.
“The energy sector remains central to Pakistan’s economic revival and long-term sustainability,” Mohammad Shoaib, chief executive officer of Lucky Investments Limited, said, adding the fund would give investors a Shariah-compliant way to participate in the sector while aligning investments with faith-based values.
The open-end fund is benchmarked against the KMI-30 Index, which tracks the 30 largest Shariah-compliant companies listed on the Pakistan Stock Exchange, and is classified as high-risk, making it suitable for investors with a long-term investment horizon.
The fund carries no minimum holding period or redemption penalty.
Lucky Investments said all investments would be overseen by a religious scholar serving as the firm’s Shariah adviser to ensure ongoing compliance with Islamic principles.
The asset manager said it currently manages more than Rs 130 billion ($460 million) in assets under management, positioning it among the fastest-growing asset management companies in the country in 2025.
