Pakistan Ends LPG Monopoly, Brings in Open Bidding for Locally Produced Gas

Prime Minister Shehbaz Sharif has confirmed a revised liquefied petroleum gas (LPG) allocation system, ending what he described as a decades-old monopoly in the sector and introducing competitive auctions for locally produced supplies.

Key points

• Wheat Imports Fail to Provide Relief in Flour Rates.
• While Iran attributed the disruption to technical matters, pakistani authorities cited security reservations and efforts to curb smuggling.
• Under the revised mechanism, the administration will allocate locally produced LPG through competitive auctions under proper supervision.
• The supply shock has pushed open market rates to as high as Rs.
• Obtain the latest business news, market insights, and economic updates wherever you prefer.

In practice, the move comes as the administration prepares for higher energy demand during the upcoming winter season.

Chairing a federal cabinet session on Wednesday, Shehbaz stated the administration was making all feasible efforts to ensure uninterrupted supplies of liquefied natural gas (LNG), LPG, and oil despite rising international rates and challenges affecting maritime routes. Wheat Imports Fail to Provide Relief in Flour Rates.

He remarked meetings were being held every two to three days to review energy requirements and develop contingency and coordination aims. The administration would additionally seek to keep power plants operational while limiting the impact of higher energy rates on consumers. LPG Allocation to Shift to Competitive Auctions.

Under the revised mechanism, the administration will allocate locally produced LPG through competitive auctions under proper supervision. Firms importing the commodity will additionally be required to follow prescribed procedures.

Meanwhile, the prime minister remarked revenue generated through the transparent auction process would go to the national exchequer and subsequently be employed to provide subsidies and relief to ordinary citizens. 10% Local LPG Now Reserved for Remote Areas.

Pakistan's LPG market has been hit by a severe supply shortage after the October 17 closure of the Gabd-Rimdan and Taftan border crossings with Iran, disrupting imports of approximately 7, 000 metric tons per day. While Iran attributed the disruption to technical matters, pakistani authorities cited security reservations and efforts to curb smuggling.

Meanwhile, the supply shock has pushed open market rates to as high as Rs. 700 to Rs. 800 per kg in some areas, compared with OGRA's notified November rate of Rs. 294 per kg. Notably, a 12 kg cylinder that previously cost around Rs. 4, 500 has additionally climbed to approximately Rs. 7, 000, intensifying pressure on households ahead of winter as the administration scrambles to arrange alternative imports. Stay Connected with ProPakistani.

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For now, pakistan Ends LPG Monopoly, Brings in Open Bidding for Locally Produced Gas remains the part of the story worth watching, and further updates are likely as more details are confirmed.