Prime Minister Shehbaz Sharif has declared an end to the decades-old monopoly in Pakistan’s liquefied petroleum gas (LPG) sector. He announced a new competitive system aimed at improving transparency, increasing supplies and providing financial relief to consumers.
Chairing a federal cabinet meeting in Islamabad, the prime minister said the government had introduced a revised LPG allocation mechanism. Under the new arrangement, authorities will distribute locally produced LPG through competitive auctions under proper supervision.
Shehbaz said the government would deposit revenue generated through these auctions into the national exchequer. Subsequently, authorities would use the proceeds to provide subsidies and relief to ordinary citizens.
Government Introduces Competitive LPG Auction System
The new mechanism will replace the longstanding allocation system that benefited influential market players. Moreover, private companies importing LPG will also have to follow prescribed procedures.
The government aims to encourage competition between public and private companies. Consequently, officials expect the revised arrangement to improve market transparency and strengthen supply management.
The reforms come amid serious LPG shortages following disruptions along Pakistan’s western borders. These shortages have pushed open-market prices significantly higher, increasing pressure on households ahead of winter.
Shehbaz Reviews Winter Energy Supply Arrangements
Meanwhile, the prime minister directed relevant departments to ensure uninterrupted supplies of LPG, liquefied natural gas (LNG) and petroleum products. He said the government was reviewing energy requirements every two to three days.
Shehbaz also appreciated the petroleum ministry’s efforts to prevent a proposed Rs. 15 per litre petrol price increase. He said refineries agreed to share their additional profits, helping the government avoid transferring that burden to consumers.
Furthermore, he confirmed that the government’s fuel subsidy programme would continue until at least December. Around 15 million people have benefited directly, with approximately Rs28 billion spent under the scheme.
The prime minister also directed authorities to take action against petrol pumps involved in subsidy irregularities.
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