ISLAMABAD: The federal government has decided to introduce a new policy aimed at ensuring fair distribution and greater competition in Pakistan’s liquefied petroleum gas (LPG) market. Under the proposed mechanism, 90 per cent of locally produced LPG will be sold through transparent auctions, while the remaining 10 per cent will be allocated to state-owned LPG marketing companies.
According to the Ministry of Petroleum, the first meeting of the LPG committee established under the new deregulated framework was held on Saturday under the chairmanship of the Secretary Petroleum.
Federal Minister for Petroleum Ali Pervaiz Malik said the government was taking steps to address public concerns over LPG availability and unfair pricing.
The meeting marked an important step towards implementing the auction framework approved by the federal cabinet on November 4, 2026.
Under the new mechanism, local LPG producers will allocate 10 per cent of their total production to state-owned LPG marketing companies to meet the requirements of remote and hard-to-reach areas. The remaining 90 per cent will be offered through transparent auctions conducted in the presence of the media.
The meeting also decided that each company participating in the auctions would be allowed to purchase a maximum of 20 metric tonnes of LPG per day, ensuring equal opportunities for all eligible bidders.
Daily LPG Production to Be Monitored
The government has also decided to monitor LPG production on a daily basis, with production figures to be submitted to the Prime Minister to ensure effective oversight of the country’s supply situation.
Ali Pervaiz Malik said the initiative was being undertaken in the public interest, particularly to address the difficulties faced by consumers who struggle to obtain LPG at affordable prices.
He added that the new mechanism was intended to strengthen the supply chain, promote fair distribution of locally produced LPG, improve consumer access to the fuel and protect vulnerable segments of society.
The LPG committee will be headed by the Secretary Petroleum. Its members will include the Chairman of the Oil and Gas Regulatory Authority (OGRA), the Managing Directors of Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), the President of United Energy Pakistan Limited (UEP), and the Director General of Liquefied Gases.
