ISLAMABAD: The first meeting of the committee established to ensure a transparent auction of liquified petroleum gas (LPG) was held under the chairmanship of the Secretary Petroleum in Islamabad, during which it was decided that local producers will allocate 10 percent of their production to government-owned marketing companies.
Addressing the meeting which was held in Islamabad on Saturday, Federal Minister for Petroleum Ali Pervaiz Malik said that addressing public concerns regarding LPG availability and unfair pricing is a government priority.
He said the new auction system will help ensure fair distribution of LPG, stability of the supply chain and energy security.
Under the new mechanism, local LPG producers will allocate 10 percent of their production to government-owned marketing companies to meet the needs of remote areas.
The remaining ninety percent of locally produced LPG will be sold through a transparent auction in the presence of the media.
The committee said each company will be allowed to acquire a maximum of 20 metric tons of LPG per day through the auction.
Daily LPG production will be monitored, and the data will be presented to the Prime Minister.
Ali Pervaiz Malik said all eligible companies will be provided equal opportunities to participate in the auction.
The Federal Minister said the government aims to ensure better availability of LPG to consumers at reasonable prices.
The Federal Cabinet had approved the LPG auction framework on the 4th of this month.
