PM announces competitive bidding for locally produced LPG, replacing longstanding allocation system

Prime Minister Shehbaz Sharif said on Wednesday that domestic LPG supplies will move from the longstanding allocation model to supervised competitive auctions. Profit by Pakistan Today reported that auction proceeds will go to the national exchequer and fund consumer subsidies, while importers will continue to follow prescribed procedures.

The cabinet also reviewed winter readiness for LPG, LNG and petroleum supplies amid higher global energy costs and maritime-route difficulties. Sharif said refineries had agreed to contribute windfall profits, allowing the government to avoid a proposed Rs15 per litre petrol increase; the subsidy programme, which has paid out about Rs28 billion to around 15 million people, is set to continue through December. He also ordered closure and penalties for petrol pumps where irregularities were found.