Islamabad (GNP): The first meeting of the LPG Committee under approved deregulated framework was held under the chairmanship of Secretary Petroleum, with Federal Minister for Petroleum Ali Pervaiz Malik emphasizing the government’s commitment to addressing public concerns regarding LPG availability and unfair prices.
The Federal Minister said that the initiative was being undertaken in the public interest, particularly to address the difficulties faced by consumers who were unable to access LPG at affordable prices. He said the new auction mechanism would create greater resilience in the supply chain, strengthen energy infrastructure, ensure equitable distribution of indigenous LPG while protecting vulnerable segments at the same time.
Under the new mechanism, indigenous LPG producers will allocate 10 percent of their production to state-owned LPG marketing companies for hard areas, while the remaining 90 percent will be offered through transparent auctions in media presence. The arrangement aims to improve access to LPG, particularly in remote and underserved areas, while ensuring wider market participation.
The Committee has been constituted under the chairmanship of Secretary Petroleum, with Chairman Oil and Gas Regulatory Authority (OGRA), Managing Director Oil and Gas Development Company Limited (OGDCL), Managing Director Pakistan State Oil (PSO), President United Energy Pakistan Limited (UEP), and Director General (Liquefied Gases) as its members.
During the meeting, it was decided that a maximum allocation of 20 metric tons per day would be allowed to each company participating in the auction, providing a fair opportunity to all eligible bidders.
It was further decided that daily LPG production would be closely monitored and the production figures would be presented to the Prime Minister to ensure effective oversight of the supply situation.
Ali Pervaiz 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.
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The first meeting marks an important step towards operationalizing the LPG auction framework approved by the Federal Cabinet on November 4, 2026. The Committee is mandated to oversee auctions of indigenous LPG, review market supply arrangements and periodically assess pricing and bidding mechanisms.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
