Govt to auction 90% of indigenous LPG production under new mechanism
Pakistan will auction 90% of indigenous liquefied petroleum gas (LPG) production under a new allocation mechanism, the Petroleum Ministry said on Saturday, in a move aimed at promoting competitive bidding and improving transparency in the distribution of locally produced fuel. The first meeting of the LPG committee under the approved deregulated framework was held under the chairmanship of the…
The Pakistani government plans to auction 90% of domestically produced liquefied petroleum gas (LPG) through a new allocation system, according to the Petroleum Ministry. This initiative aims to foster competitive bidding and enhance transparency in the distribution of locally generated fuel. The inaugural meeting of the LPG committee, established under the approved deregulated framework, was held under the chairmanship of the Secretary for Petroleum.
Federal Minister for Petroleum Ali Pervaiz Malik highlighted the government's dedication to tackling public concerns about LPG availability and pricing disparities.
The committee's primary role involves overseeing auctions of indigenous LPG, evaluating market supply arrangements, and periodically evaluating pricing and bidding methods. Under the new framework, indigenous LPG producers will allocate 10% of their production to state-owned LPG marketing companies serving hard-to-reach regions, while the remaining 90% will be distributed through transparent auctions with media presence.
A maximum allocation of 20 metric tons per day will be permitted to each company participating in the auction, ensuring a fair opportunity for all eligible bidders.
The government aims to monitor daily LPG production closely and present the figures to the Prime Minister to maintain effective oversight of the supply situation. The move is intended to benefit the public, particularly those struggling to access LPG at reasonable prices. The initiative is expected to improve supply chain resilience, bolster energy infrastructure, and ensure equitable distribution of indigenous LPG while safeguarding vulnerable groups.
The LPG committee comprises key figures from relevant organizations, including the Chairman of the Oil and Gas Regulatory Authority (OGRA), Managing Directors from Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), President of United Energy Pakistan Limited (UEP), and Director General of Liquefied Gases.
Ali Pervaiz Malik emphasized the government's commitment to creating a level playing field and ensuring fair opportunities for all participating companies while addressing public concerns regarding LPG access.
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