ISLAMABAD: Prime Minister Shehbaz Sharif has announced a competitive and transparent mechanism for allocating liquefied petroleum gas (LPG) quotas, aimed at ending a decades-old monopoly in the sector and ensuring fair distribution of locally produced gas.
Thank you for reading this post, don't forget to subscribe!Under the proposed system, locally produced LPG will be allocated through competitive auctions under proper supervision, while companies importing the commodity will also be required to follow prescribed procedures.
The prime minister said revenue generated through the transparent auction process would be deposited into the national exchequer and subsequently utilised to provide subsidies and relief to ordinary citizens.
Addressing the country’s LPG supply situation, PM Shehbaz attributed the pressure on supplies primarily to high international petroleum prices and disruptions to maritime routes. However, the closure of Pakistan-Iran border crossings has also affected LPG supplies, resulting in cylinders being sold at nearly twice the official price in some open markets.
To avoid shortages during the winter season, the government is holding review meetings every two to three days to assess energy requirements and develop contingency and coordination plans.
The prime minister also highlighted the government’s efforts to contain rising fuel prices, saying Petroleum Minister Ali Pervaiz Malik, his team, the Oil and Gas Regulatory Authority (OGRA) and the relevant committee had approached domestic refineries to share their windfall profits.
The initiative was aimed at preventing a proposed Rs15 per litre increase in petrol prices from being passed on to consumers amid rising international crude oil prices.
Appreciating the decision, PM Shehbaz said the government’s fuel subsidy programme, launched in September, would continue until the end of December.
He disclosed that Rs28 billion had been spent under the programme so far, benefiting approximately 15 million individuals, or an estimated 75 million people when their families were included.
The prime minister described the subsidy scheme as successful and transparent, adding that it was being monitored by the Intelligence Bureau (IB).
He acknowledged that intelligence agencies had identified irregularities at a few petrol pumps and said the petroleum minister had been directed to ensure their closure and impose substantial financial penalties on those found involved in malpractice.
