Fair LPG pricing, availability government priority, says Ali Pervaiz Malik

Federal Minister Ali Pervaiz Malik said the initiative aims to ensure fair market opportunities, improve LPG availability and protect consumers. pic.twitter.com/wPnlwiFKV3“A maximum of 20 MT/day will be allocated to each participating company to ensure fair competition,” it added further.Speaking during the meeting, Malik said the initiative aims to ensure fair market opportunities, improve LPG availability and protect consumers.He said the new system would promote fair distribution, stabilise the supply chain….

A maximum of 20 MT/day will be allocated to each participating company to ensure fair competition.The minister added that all eligible companies would be given equal opportunities to participate in the auction, reiterating the government's commitment to ensuring better LPG availability to consumers at reasonable prices.The move comes amid a worsening LPG supply crisis, with disruptions in imports from Iran triggering a sharp increase in prices across the country.Pakistan relies….

While the regulator had fixed the official price at Rs279.34 per kilogramme for October, market rates in several areas rose to between Rs550 and Rs600 per kilogramme, reaching Rs750 in parts of Khyber-Pakhtunkhwa.The crisis was further highlighted by the closure of two Iranian border crossings on October 17, which halted LPG imports and drove up prices.

Before the disruption, Pakistan was importing around 7,000 metric tons of LPG daily from Iran, according to traders cited in The Express Tribune report published on November 3.The supply crisis also exposed longstanding weaknesses in the LPG pricing mechanism.In September, OGRA and the Petroleum Division identified distortions in the existing pricing framework, particularly the exclusion of import parity from the formula.

The framework, originally designed for domestic producers, had subsequently been applied to importers, contributing to discrepancies between notified and actual market prices.Against this backdrop, the government announced sweeping reforms to the LPG sector, including the abolition of the quota-based distribution mechanism and the introduction of competitive auctions for locally produced LPG.

Govt decides to sell 90 per cent of locally produced LPG through transparent auction.

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