Pakistan's first LPG auction committee meets in Islamabad
Minister Ali Pervaiz Malik said 10 percent of local LPG output will go to government companies for remote areas, with the rest auctioned.
Pakistan's government held the first meeting of a committee set up to run a transparent auction of liquefied petroleum gas on Saturday, the state broadcaster Radio Pakistan reported.
The meeting was chaired by the Secretary Petroleum in Islamabad.
Petroleum Minister Ali Pervaiz Malik said that tackling public complaints about LPG supply and unfair prices is a top priority for the government.
He said the new auction system is meant to ensure fair distribution of LPG, a stable supply chain and energy security.
Under the new mechanism, local LPG producers will set aside 10 percent of their output for government-owned marketing companies serving remote areas, the committee said.
The remaining 90 percent of domestically produced LPG will be sold through a transparent auction held in the presence of the media, the committee said.
Each company will be allowed to buy a maximum of 20 metric tons of LPG per day through the auction, it said.
Daily LPG production will be monitored, and the data will be presented to the prime minister, the committee said.
Malik said all eligible companies will get equal opportunities to take part in the auction.
The government aims to make LPG more available to consumers at reasonable prices, he said.
The federal cabinet approved the LPG auction framework on Nov. 4.
