ISLAMABAD: Pakistan plans to sell 90% of its domestically produced liquefied petroleum gas through open auctions, the Petroleum Ministry announced Saturday, part of an effort to inject competition and transparency into how locally produced fuel is distributed.
Petroleum Minister Ali Pervaiz Malik presided over the first meeting of an LPG committee set up under the newly deregulated framework, according to a ministry statement. Malik said the government was determined to tackle public complaints about LPG shortages and inflated prices.
Under the plan, domestic LPG producers will set aside 10% of their output for state-owned marketing companies serving remote areas. The other 90% will go to auction, with media present to observe the process.
Bidders will be capped at 20 metric tons per day each, a limit the committee said would give all eligible companies a fair shot.
The committee also agreed to track daily LPG production closely and report the figures to the prime minister as part of efforts to keep supply under effective oversight.
Malik described the move as a public-interest measure, saying it was meant above all to help consumers who cannot find LPG at prices they can afford. The auction system, he said, should make the supply chain more resilient, strengthen energy infrastructure and spread domestic LPG more fairly while shielding vulnerable groups.
The committee is chaired by the Secretary for Petroleum. Its members include 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.
Malik said the goal was to give all participating companies a level playing field and fair opportunities while improving consumers’ access to LPG.
Saturday’s meeting was the first step toward putting into practice an LPG auction framework the federal cabinet approved on Nov. 4, 2026. The committee is tasked with overseeing domestic LPG auctions, reviewing market supply arrangements and periodically assessing pricing and bidding mechanisms.
