NGC Calls for LPG Price Review Amid Rising Costs

By the Editorial Team · Tuesday, September 1, 2026

National Gas Company SAOG has renewed its request to the Omani government to revise the regulated price of LPG cylinders, citing a nearly 50% increase in procurement and operational costs since the last price adjustment in 1994. This move comes as NGC seeks to stabilize its finances and awaits regulatory decisions on a new industry-wide colour-coded cylinder branding system and potential safety upgrades.

National Gas Company SAOG (NGC), a leading liquefied petroleum gas (LPG) bottler in Oman, has renewed its request to the government for a revision of the regulated pricing framework governing LPG cylinders. The company cites rising input and operational expenses that have exerted pressure on its profit margins in the domestic market.

NGC’s CEO, Dr. Rachid Majjad, confirmed the company’s formal submission to the Ministry of Commerce, Industry and Investment Promotion in early July 2026, marking a continuation of discussions with the ministry’s new leadership. During the company’s first-half 2026 earnings call, Dr. Majjad emphasized the critical need for a price adjustment under current market conditions.

The existing regulated rate applicable to NGC’s standard 22-kilogram LPG cylinder stands at RO 1.9—a level that has not changed since 1994. This rate applies to the bottler’s portion of the LPG supply chain and differs from the final retail price paid by consumers. The pricing framework dates back to regulations established in 1994, which outlined the sale, maintenance, and replacement of LPG cylinders in Oman.

According to Dr. Majjad, the company has experienced nearly a 50 percent increase in LPG procurement costs alongside rising expenses in payroll, transportation, taxation, and other operational areas. These factors have intensified the financial strain caused by the long-standing price freeze, which NGC has been addressing partially by withdrawing discounts previously extended to traders and distributors. This discount removal began in certain areas in January 2026 and will extend to Muscat starting September 1.

NGC has previously voiced concerns about the pricing model. As early as 2014, the company highlighted the challenges posed by rising costs without a corresponding increase in regulated cylinder prices. The reimplementation of full regulated pricing marks a strategic shift intended to stabilize the company’s financial health.

In addition to the price revision efforts, NGC is awaiting regulatory guidance on a proposed industry-wide scheme to introduce colour-coded branding for LPG cylinders. This initiative aims to provide clearer differentiation among various LPG providers and enhance market accountability and safety. Under the proposal, each LPG company would have cylinders painted in distinctive colours to indicate ownership. NGC plans to adopt yellow cylinders to align with its “MiraGas” brand, currently utilized in Malaysia.

Dr. Majjad noted that the plan may extend beyond visible branding, with the company considering replacing existing cylinder valves with self-closing models that meet international safety standards. NGC has evaluated the costs associated with these changes and submitted estimates to the ministry. However, the government has yet to determine how the implementation expenses will be allocated, including whether consumers will bear additional costs or if government support will be provided.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.