Ministry of Petroleum Establishes New LPG Auction Procedure Following Federal Cabinet Approval; Petroleum Minister Ali Pervaiz Malik Assures Equal Opportunities and Fair Distribution for All Eligible Companies
ISLAMABAD: The Ministry of Petroleum (MoP) has officially presented a comprehensive new process for auctioning Liquefied Petroleum Gas (LPG), following the formal approval of the new framework for auctions by the Federal cabinet on November 4, 2026.
The new mechanism has been finalized in a specially held high-level meeting under the leadership of the Petroleum Secretary to make the distribution of LPG as transparent as possible. The government will continue to address public concerns over availability of products and unjustified product pricing as a top priority, Federal Minister for Petroleum Ali Pervaiz Malik said, adding that the new auction model will help in ensuring equitable distribution, secure supply chains and enhance national energy security.
The Ministerial Briefing is followed by a Key Highlights of the New LPG Auction Framework presentation.The New LPG Auction Framework is then presented in Key Highlights and followed by a Ministerial Briefing.
The new policy includes Quota Allocation and Open Bidding: 10 per cent of LPG produced by domestic enterprises would be sold to state-owned marketing companies and the remaining 90 per cent of LPG produced domestically would be sold through open bidding in the presence of media representatives.
The market monopolization will be avoided by limiting daily acquisition by each participating company to the maximum of 20MT of LPG.
Daily monitoring and prime ministerial oversight: Minister Ali Pervaiz Malik said that the production of LPG will be closely monitored on a daily basis and statistical reports will be sent directly to the Prime Minister.
The Minister emphasised that all the companies eligible for bidding will have an equal opportunity in the bidding process to deliver good supply and reasonable retail prices to end consumers, as a matter of government commitment towards consumer welfare, to ensure an equal opportunity to all the bidders.