Government Introduces New Auction System to Ensure LPG Availability

Government Introduces New LPG Auction System, Sets 10% Quota for Public Sector

New mechanism limits daily LPG purchases to 20 tonnes per company and aims to ensure fair distribution and reasonable prices.

ISLAMABAD, November 7, 2026: The government has introduced a new transparent auction mechanism to ensure the fair distribution and improved availability of Liquefied Petroleum Gas (LPG), allocating 10 percent of local production to government marketing companies and the remaining 90 percent to private companies through competitive bidding.

According to Express News, the first meeting of the committee established to oversee transparent LPG auctions was held under the chairmanship of the Petroleum Secretary.

During the meeting, it was decided that local LPG-producing companies would reserve 10 percent of their total production for government marketing companies, while the remaining 90 percent would be sold through a transparent auction process conducted in the presence of the media.

Under the new mechanism, each company will be allowed to purchase a maximum of 20 metric tonnes of LPG per day through the auction. Equal opportunities will be provided to all eligible companies participating in the bidding process.

The committee also decided to monitor daily LPG production, with relevant figures to be submitted to the Prime Minister for review.

Federal Minister for Petroleum Ali Pervaiz Malik said addressing public concerns regarding LPG availability and unfair pricing was among the government’s top priorities.

He expressed confidence that the new auction mechanism would promote fair distribution, strengthen the supply chain and contribute to national energy security.

The government aims to ensure a consistent LPG supply to consumers at reasonable prices.

The federal cabinet approved the framework for transparent LPG auctions on November 4, 2026.