Govt reserves 10pc of local LPG for state-owned firms

A petroleum ministry committee has set aside 10 per cent of locally produced LPG for state-owned marketing companies, while limiting each private auction participant to 20 tonnes a day. The remaining 90 per cent of domestic output is to be sold in media-attended auctions, Dawn reported.

Public-sector buyers will pay the producer rate linked to the Saudi Aramco CP price, and their supplies are intended for remote and underserved areas. The framework was approved by the federal cabinet on Nov 4; the committee will also track daily output and report production figures to the prime minister.

The Pakistan LPG Marketers Association disputes the plan’s likely impact, arguing that local production covers only about 30 per cent of consumption and that the Iran border closure has worsened supply. It says the public-sector share would amount to 210 tonnes daily, based on reported local output of 2,100 tonnes against consumption of around 7,000 tonnes.