ISLAMABAD: Pakistan will auction 90% of its indigenous liquefied petroleum gas production under a new allocation mechanism aimed at promoting competitive bidding and improving transparency in the distribution of locally produced fuel, the Petroleum Ministry said Saturday.
The first meeting of the LPG committee under the approved deregulated framework was chaired by the Secretary for Petroleum, with Federal Minister for Petroleum Ali Pervaiz Malik stressing the government's commitment to addressing public concerns about LPG availability and unfair prices, according to a ministry statement.
Under the new mechanism, indigenous LPG producers will allocate 10% of their production to state-owned LPG marketing companies for hard-to-reach areas, while the remaining 90% will be offered through transparent auctions in the presence of media.
The committee decided that each company participating in the auction would be allowed a maximum allocation of 20 metric tons per day, providing a fair opportunity to all eligible bidders.
It also decided that daily LPG production would be closely monitored and production figures presented to the prime minister to ensure effective oversight of the supply situation.
Malik said the initiative was being undertaken in the public interest, particularly to address difficulties faced by consumers unable to access LPG at affordable prices. He said the new auction mechanism would create greater resilience in the supply chain, strengthen energy infrastructure and ensure equitable distribution of indigenous LPG while protecting vulnerable segments.
The committee is chaired by the Secretary for Petroleum and includes the chairman of the Oil and Gas Regulatory Authority, the managing directors of Oil and Gas Development Company Limited and Pakistan State Oil, the president of United Energy Pakistan Limited and the director general for liquefied gases as members.
Malik underscored that the objective was to provide a level playing field and fair opportunities to all participating companies while ensuring improved access to LPG for consumers.
The first meeting marks an important step toward operationalizing the LPG auction framework approved by the federal cabinet on Nov. 4, 2026. The committee is mandated to oversee auctions of indigenous LPG, review market supply arrangements and periodically assess pricing and bidding mechanisms.
