First LPG committee meeting sets 20-ton daily cap for auction bidders

The first meeting of the LPG Committee under the approved deregulated framework was held under the chairmanship of the Secretary Petroleum, with Federal Minister for Petroleum Ali Pervaiz Malik emphasizing the government's commitment to addressing public concerns about LPG availability and unfair prices.

Malik said the initiative was being undertaken in the public interest, particularly to address the difficulties of 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 and ensure equitable distribution of indigenous LPG while protecting vulnerable segments.

How the auction will work

Under the new mechanism, indigenous LPG producers will allocate 10% of their production to state-owned LPG marketing companies for hard-to-reach areas. The remaining 90% will be offered through transparent auctions held in the presence of the media. The arrangement aims to improve access to LPG, particularly in remote and underserved areas, while ensuring wider market participation.

Who sits on the committee

The committee has been constituted under the chairmanship of the Secretary Petroleum. Its members are the chairman of the Oil and Gas Regulatory Authority (OGRA), the managing directors of Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), the president of United Energy Pakistan Limited (UEP) and the director general (Liquefied Gases).

Decisions at the first meeting

The meeting decided that each company participating in the auction would be allowed a maximum allocation of 20 metric tons per day, giving all eligible bidders a fair opportunity. It also decided that daily LPG production would be closely monitored, with production figures presented to the Prime Minister to ensure effective oversight of the supply situation.

Malik underscored that the objective was to provide a level playing field and fair opportunities to all participating companies while improving consumers' access to LPG.

The first meeting marks a step toward 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.