Pakistan has introduced a new mechanism for the transparent auction of locally produced liquefied petroleum gas (LPG), with 90 percent of production to be sold through auctions held in the presence of the media.

The decision was discussed at the first meeting of a committee established to ensure transparent LPG auctions, held in Islamabad on Saturday, 7 November. Federal Minister for Petroleum Ali Pervaiz Malik said addressing public concerns over the fuel's availability and unfair pricing is a government priority, and that the new system should help ensure fair distribution, supply-chain stability and energy security.

How the new system works Under the new mechanism, local LPG producers will allocate 10 percent of their production to government-owned marketing companies to meet the needs of remote and hard-to-reach areas. The remaining 90 percent of locally produced LPG will be sold through a transparent auction in the presence of the media.

Each company taking part in the auction will be allowed to acquire a maximum of 20 metric tons of LPG per day, a limit the committee said would give all eligible companies a fair chance to participate. The committee also decided to monitor daily LPG production closely, with production figures to be submitted to the prime minister for oversight of the supply situation.

Who oversees the auctions The committee is chaired by the Secretary Petroleum. Its members include the chairman of the Oil and Gas Regulatory Authority (OGRA), the managing directors of Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO), the president of United Energy Pakistan Limited (UEP), and the Director General (Liquefied Gases).

The meeting is the first step towards putting into practice an LPG auction framework approved by the federal cabinet on 4 November 2026. The committee will supervise domestic LPG auctions, review market supply arrangements and periodically assess pricing and bidding mechanisms.

Sources: [Centreline](https://centreline.com.pk/2026/11/07/govt-introduces-transparent-auction-mechanism-for-locally-produced-lpg/) | [PKRevenue](https://pkrevenue.com/pakistan-lpg-auction-daily-allocation/)