Petroleum Minister Prioritizes LPG Availability and Fair Pricing in New Policy

ISLAMABAD: Petroleum Minister Ali Pervaiz Malik announced on Saturday that addressing public concerns regarding the availability and pricing of liquefied petroleum gas (LPG) is a top priority for the government. This declaration comes in the wake of a new LPG policy aimed at enhancing competition and supply through the involvement of four state-owned enterprises (SOEs) in government-to-government (G2G) and business-to-business (B2B) arrangements.

The government has mandated these SOEs to re-enter the LPG import sector to alleviate severe supply constraints and combat rising prices. Under the new policy framework, locally produced gas will be auctioned openly, effectively eliminating intermediaries who have historically profited from the existing system. Minister Malik emphasized that this auction system is designed to ensure fair distribution of LPG, stabilize the supply chain, and enhance energy security.

This initiative is expected to have significant implications for consumers, as it aims to reduce the financial burden associated with LPG prices, which have surged in recent months. By fostering a competitive environment, the government hopes to create a more equitable market that benefits the average citizen while ensuring a reliable supply of energy.

The minister also attended the inaugural meeting of a committee established to oversee the transparent auction process for LPG. Moving forward, the government plans to implement this new mechanism, which will require local LPG producers to allocate 10 percent of their production to the auction system, thereby promoting fairness and accessibility in the market.