LPG Subsidy Scheme: BISP Families to Get LPG at Rs 300 to 350 per Kg

For families who cook on LPG, this winter may finally bring some relief. The federal cabinet has approved a new lpg subsidy scheme under which deserving consumers will get LPG at Rs 300 to 350 per kilogram, with eligibility taken from the Benazir Income Support Programme lists.

Petroleum Minister Ali Pervaiz Malik announced the policy at a press conference in Islamabad on November 3, and Dawn reported the details the next day. The scheme is part of a wider LPG policy that also brings four state companies back into gas imports, because the shortage had pushed market prices to extreme levels.

LPG Subsidy Scheme and the Cabinet Decision

The lpg subsidy scheme rests on a direction from the Prime Minister: LPG should reach deserving and vulnerable consumers at Rs 300 to 350 per kg, using the eligibility criteria of the Benazir Income Support Programme. In plain words, if your household is on the BISP lists, you are the family this subsidy is designed for.

The minister was honest that even this subsidised rate sits above the official price on paper. OGRA had notified a maximum price of Rs 294.08 per kg for November, yet the notified price meant little in the open market, where the cylinder gas people actually buy had become far more expensive.

Why LPG Prices Went Out of Control

LPG is often called the poor man’s fuel, and it was in short supply even before winter started, which the minister blamed on disruptions along the western borders. Taking advantage of the shortage, unscrupulous sellers were charging Rs 700 to 800 per kg in different areas, more than double the notified maximum.

Once the state companies begin supplying gas, the minister expects the open market price to settle around Rs 450 to 500 per kg, based on the Saudi Contract Price and prevailing premiums. Private importers will remain free to bring in their own supplies and compete, so the subsidised rate is meant to sit below the market, not replace it.

How the Subsidy Will Be Paid For

The lpg subsidy scheme does not come from the regular budget. Instead, the old discretionary quota system, which the minister said benefited influential groups, is being abolished. Local producers will now sell their LPG through open auctions in lots of five to ten tonnes, a process monitored by OGRA and the Petroleum Division.

State companies will import LPG in bulk and publish a base price linked to the Saudi Aramco Contract Price. Local producers receive the price their auction fetches, and the difference between that producer price and the state linked base price is deposited into a dedicated fund. That fund is what pays for cheaper gas for BISP families, under what officials call a clawback mechanism.

Four State Companies Return to LPG Imports

Four state owned enterprises have been directed to re-enter the import business: Pakistan State Oil, Pakistan LNG Ltd, Sui Southern Gas-LPG and Parco-LPG. They will arrange supplies through government to government and business to business deals, and the minister said offers had already arrived from Saudi Arabia and Oman.

The policy also changes who watches prices. Under the new arrangement, OGRA will stop issuing its monthly price notifications for locally produced and imported LPG, while the Competition Commission of Pakistan, the National Explosives and Petroleum Safety Agency, OGRA and district administrations are tasked with acting against collusion and checking quality and prices on the ground.

What BISP Families Should Do Now

Here is the honest part: the government has not announced a start date, a registration method or a distribution channel for the subsidised gas yet. There is no form to fill and no office to visit today, and anyone charging a fee to register you for the lpg subsidy scheme is running a scam.

What you can do is keep your BISP record straight, because eligibility will follow the BISP criteria. Check your household status on the portal described in our BISP 8171 web portal guide, and understand how eligibility is judged through our PMT score check guide. When the start date and the method are announced, families already correctly recorded will be the ones who benefit first.

Official Source: Oil and Gas Regulatory Authority (OGRA), official website

LPG Subsidy Scheme FAQs

What price will BISP families pay under the lpg subsidy scheme?

The Prime Minister has directed that deserving consumers get LPG at Rs 300 to 350 per kilogram, using the eligibility criteria of the Benazir Income Support Programme.

Who is eligible for the subsidised LPG?

Eligibility follows the BISP criteria for deserving and vulnerable consumers. The detailed method of identifying and supplying families has not been announced yet.

When will the subsidised LPG start?

No start date has been announced. The cabinet has approved the policy and state companies are arranging imports, but the government has not yet shared the launch date or distribution method.

What is the current official LPG price?

OGRA notified a maximum price of Rs 294.08 per kg for November, but the petroleum minister said unscrupulous sellers were charging Rs 700 to 800 per kg in the open market.

How will the LPG subsidy be funded?

It will be funded from a dedicated account that receives the difference between the auction price local producers get and the state linked base price, under a clawback mechanism.