Pakistan will auction 90% of its locally produced liquefied petroleum gas (LPG) under a new mechanism aimed at promoting transparency, fair competition and improving fuel distribution, the Petroleum Ministry said on Saturday.
Under the framework approved by the federal cabinet, producers will allocate 10% of their output to state-owned LPG marketing companies for supply to remote areas. The remaining production will be sold through open auctions.
The government has capped the allocation for each participating company at 20 metric tons per day to ensure equal opportunities for bidders. Authorities will also monitor daily production and report figures to the prime minister.
Federal Minister for Petroleum Ali Pervaiz Malik said the initiative aims to address consumer concerns over LPG availability and high prices while ensuring fair distribution and protecting vulnerable communities.
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