ISLAMABAD: The Petroleum Division said on Friday that a transparent and competitive system for allocating locally produced liquefied petroleum gas (LPG) remains a government priority. It also pushed back against what it called an inaccurate picture painted by a recent news report on the proposal.
The report claimed that Prime Minister Shehbaz Sharif had turned down a Petroleum Division plan to auction LPG produced by state-owned entities (SOEs), citing the lack of a suitable legal and policy framework. According to the report, the premier also wanted broader policy changes, backed by legal and regulatory structures, before any transaction could go ahead. The division said its account of the proposed allocation scheme was wrong.
Division’s measures to curb LPG supply concentration
In a statement, the division said the government wants to dispose of domestically produced LPG through an open, competitive process that gives industry players a level playing field. It said this would also address the concentration of local supplies among a small number of market players. The division added that it had submitted a package of measures to improve LPG supply in the domestic market.
One proposal would introduce a transparent, competitive method for disposing of local LPG while keeping supplies available in remote and hilly areas, in line with the LPG Policy 2016. The statement said the mechanism is meant to encourage fair competition, make allocation more transparent and ensure that upstream enterprises earn a fair return on their resources. The division said the aim is to give all market participants equal opportunities rather than letting a few companies keep the benefits.
Court case and public interest in LPG allocation
The division noted that the matter is currently being pursued through the courts. It said the government reserves the right to use all available legal options in accordance with the law. The government would continue pursuing steps to build a fair and transparent business environment while protecting consumer interests, the division said.
The division stressed that public welfare remains the top priority of Prime Minister Shehbaz Sharif’s government, particularly in improving LPG availability and distribution. It said consumers in remote and hilly regions must keep access to supplies. The initiative, it added, should be viewed within a wider push for transparency, fair competition and better market supply, and remains subject to the applicable legal framework and the public interest.
