Govt to auction 90% of locally produced LPG

ISLAMABAD: The government has decided to sell 90 per cent of locally produced liquefied petroleum gas (LPG) through a transparent auction system to ensure fair distribution and provide equal opportunities to eligible companies.

The decision was taken at the first meeting of a committee established to oversee the transparent auction of LPG. The meeting was chaired by the petroleum secretary and focused on introducing a fair mechanism for the sale and distribution of locally produced gas.

Under the proposed system, each eligible company will be allowed to obtain a maximum of 20 metric tonnes of LPG per day through the auction. The government has decided to provide equal opportunities to all companies meeting the eligibility criteria to ensure transparency and prevent any company from gaining an unfair advantage.

The remaining 10 per cent of locally produced LPG will be reserved for government-owned marketing companies. This allocation is intended to ensure supplies to remote and underserved areas where access to LPG remains a challenge.

Federal Petroleum Minister Ali Pervaiz Malik said addressing public concerns over LPG availability and unfair pricing was among the government’s key priorities.

He said the new auction mechanism would help ensure the fair distribution of LPG, improve transparency and strengthen the country’s supply chain.

The minister added that the revised system was also expected to contribute to energy security by improving the availability of LPG and establishing a more reliable distribution mechanism.

The government’s move comes amid concerns over LPG availability, distribution practices and pricing in different parts of the country. Through the new arrangement, authorities aim to ensure that locally produced LPG reaches eligible companies through a competitive process while maintaining supplies for areas dependent on government marketing companies.