LPG auction results held back amid legal, policy hurdles
• Retail prices may rise by about 15pc if auction costs are passed on • Govt says signature bonus burden should not be transferred to consumers ISLAMABAD: Amid legal challenges and political pressure, the Petroleum Division has held back for more than a week the results of bidding for the sale of locally produced liquefied petroleum gas (LPG), which is estimated to result in a 15 per cent…
The auction of locally produced liquefied petroleum gas (LPG) in Pakistan has been delayed due to legal challenges and political pressure, potentially leading to a 15 per cent increase in retail prices for consumers. The Petroleum Division, under the direction of Petroleum Minister Ali Pervaiz Malik, has held back the auction results for over a week, despite the highest bidder offering Rs205 million for the supply of a lot over three years.
This lot comprises five tonnes of LPG per day, and if the process goes through, it would result in an additional Rs440 added to the price of every cylinder before the LPG marketing company adds its own margin. The auction was conducted by four state-owned entities - Oil and Gas Development Company Ltd (OGDCL), Pakistan Petroleum Limited (PPL), Pak-Arab Refinery Company (Parco), and Government Holdings (Pvt) Ltd (GHPL) - who were required to offer standardised lots of five tonnes each on a pilot basis to replace the existing quota-based system.
The delay in the auction results could have significant implications for consumers, particularly those living in areas away from major urban centres and in emerging localities around cities.
Brief written by urgent.news from Dawn Business's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
