ISLAMABAD, NOV 7: The government has introduced a new mechanism for the transparent auction of locally produced liquefied petroleum gas (LPG), with 90% of production to be sold through auctions in the presence of the media.
The decision was discussed during the first meeting of a committee established to ensure transparent LPG auctions, where Minister for Petroleum Ali Pervaiz Malik said addressing public concerns over the fuel’s availability and unfair pricing is a government priority.
He said this during the first meeting of the committee established to ensure a transparent auction of LPG in Islamabad.
The minister said the new auction system would help ensure fair distribution of LPG, stability of the supply chain and energy security.
He said all eligible companies will be provided with equal opportunities to participate in the auction.
Malik said the government aims to ensure better availability of LPG to consumers at reasonable prices.
During the meeting, the committee chaired by the secretary of petroleum said that under the new mechanism, local LPG producers would allocate 10% of their production to government-owned marketing companies to meet the needs of remote areas.
The remaining 90% of locally produced LPG will be sold through a transparent auction in the presence of the media.
The committee said each company would be allowed to acquire a maximum of 20 metric tons of LPG per day through the auction.
