Govt to auction 90% of indigenous LPG production under new mechanism

Pakistan plans to sell 90% of locally produced liquefied petroleum gas through auctions under a new allocation system, the Petroleum Ministry said on Saturday. The arrangement reserves the other 10% for state-owned LPG marketers serving hard-to-reach areas.

The framework was approved by the Federal Cabinet on November 4, 2026, and its oversight committee has begun work. Bids will be capped at 20 metric tons per day for each participant, while the committee will track daily output and submit production data to the Prime Minister.

Business Recorder reported that the committee includes the managing directors of Oil and Gas Development Company and Pakistan State Oil. The government says the auction process is intended to widen access, improve transparency and address concerns about LPG availability and affordability.