Govt reserves 10pc of local LPG for state-owned firms
UNDER the LPG auction framework, private bidders will be allowed to purchase a maximum of 20 tonnes per day.—APP ISLAMABAD: A high-level committee tasked with operationalising the LPG auction framework decided on Saturday that state-owned companies would be allocated 10 per cent of locally produced LPG, while private bidders would be allowed to purchase a maximum of 20 tonnes per day through the…
The government has allocated 10 percent of locally produced LPG to state-owned firms under the new LPG auction framework, while private bidders will be able to purchase up to 20 tonnes of LPG per day. This decision was made during the committee's first meeting chaired by the secretary of petroleum, with Federal Minister for Petroleum Ali Pervaiz Malik in attendance.
The committee is responsible for overseeing auctions of indigenous LPG, reviewing market supply arrangements, and periodically assessing pricing and bidding mechanisms. The arrangement aims to improve access to LPG, particularly in remote and underserved areas, while ensuring broader market participation. The committee also decided to closely monitor daily LPG production and present production figures to the prime minister to ensure effective oversight of the supply situation.
However, the Pakistan LPG Marketers Association (PLMA) dismissed the auction plan as an eyewash, stating it was unlikely to ease the supply crunch. They argue that the high prices are due to black marketing, which is being exacerbated by a shortage of supply, and that local LPG production accounts for only around 30 percent of total consumption.
The PLMA has urged the government to take measures such as reducing the sales tax on imports, waiving terminal charges, and extending the permitted demurrage period to bring down prices for consumers.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
