ISLAMABAD: The first meeting of the LPG Committee, established under the newly approved deregulated framework, was held under the chairmanship of Secretary Petroleum, with Federal Minister for Petroleum Ali Pervaiz Malik reiterating the government’s commitment to ensuring fair prices, improved availability and transparent distribution of Liquefied Petroleum Gas (LPG).
Thank you for reading this post, don't forget to subscribe!The Federal Minister said the initiative was aimed at addressing public concerns, particularly the difficulties faced by consumers in accessing LPG at affordable prices. He emphasized that the new auction mechanism would strengthen the supply chain, improve energy infrastructure, ensure equitable distribution of indigenous LPG and protect vulnerable segments of society.
Under the new mechanism, indigenous LPG producers will allocate 10 percent of their production to state-owned LPG marketing companies for distribution in hard-to-reach areas, while the remaining 90 percent will be offered through transparent auctions conducted in the presence of the media. The arrangement is intended to ensure wider market participation and improve LPG access in remote and underserved areas.
The Committee has been constituted under the chairmanship of the Secretary Petroleum, with the Chairman of the Oil and Gas Regulatory Authority (OGRA), Managing Director of Oil and Gas Development Company Limited (OGDCL), Managing Director of Pakistan State Oil (PSO), President of United Energy Pakistan Limited (UEP), and Director General (Liquefied Gases) serving as members.
During the meeting, it was decided that each company participating in the auction would be allowed a maximum allocation of 20 metric tons of LPG per day to ensure equal opportunities for all eligible bidders.
The Committee also decided to closely monitor daily LPG production, with production figures to be submitted to the Prime Minister for effective oversight of the country’s supply situation.
Ali Pervaiz Malik stressed that the primary objective of the new arrangement was to establish a level playing field, promote fair competition among participating companies and ensure better access to LPG for consumers.
The meeting marks a significant step towards implementing the LPG auction framework approved by the Federal Cabinet on November 4, 2026. The Committee is responsible for overseeing auctions of indigenous LPG, reviewing market supply arrangements and periodically assessing pricing and bidding mechanisms to ensure transparency and efficiency in the sector.
