Pakistan will auction 90% of its locally produced liquefied petroleum gas (LPG) under a new allocation mechanism aimed at promoting competitive bidding, improving transparency, and ensuring fair fuel distribution.
The Petroleum Ministry announced the decision following the first meeting of the LPG committee under the newly approved deregulated framework. Petroleum Secretary chaired the meeting, while Federal Minister for Petroleum Ali Pervaiz Malik highlighted efforts to address concerns over LPG availability and high prices.
Under the new policy, local LPG producers will allocate 10% of their total production to state-owned LPG marketing companies for distribution in hard-to-reach areas. The remaining 90% will be offered through transparent auctions conducted in the presence of the media. The committee has also set a daily purchase limit of 20 metric tons per company to provide equal opportunities to eligible bidders.
The government will monitor daily LPG production and share the figures with the Prime Minister to track supplies and market conditions. The petroleum minister said the auction system would strengthen the supply chain, improve energy infrastructure, and help consumers access LPG at affordable prices.
The government has established an LPG committee under the Petroleum Secretary to oversee auctions and review market supply arrangements. Its members include the chairman of OGRA, managing directors of OGDCL and PSO, the president of United Energy Pakistan Limited, and the Director General of Liquefied Gases.
The committee will also periodically review pricing and bidding procedures. The first meeting marks a step towards implementing the new LPG auction framework, which was approved by the Federal Cabinet on November 4, 2026.
