PM Shehbaz Rejects LPG Auction Without Legal Framework

News Desk

ISLAMABAD: Prime Minister Shehbaz Sharif has decisively rejected a proposal from the Petroleum Division to auction liquefied petroleum gas (LPG) produced by state-owned entities (SOEs) due to the absence of a legal and policy framework.

The prime minister emphasized the necessity for a comprehensive policy overhaul, supported by a robust legal and regulatory structure, prior to executing any transactions to prevent unnecessary controversies, according to an official source.

PM Shehbaz’s refusal to endorse any interim measures means that the planned simultaneous auctions by three major public sector LPG producers, scheduled for August 10, will not proceed.

The approval of the bidding results was projected to increase LPG prices by at least 15%, compounding the already higher winter prices.

This proposal aimed to align the producer price of locally produced LPG with import parity, thereby expanding the profit margins for marketing companies and distributors.

The potential approval of the bidding process would have resulted in a net impact of Rs77,000 per tonne, translating to an increase of approximately Rs900 for a domestic cylinder of 11.8 kg.

This escalation in prices could significantly affect households across Pakistan, particularly during the winter months when demand for LPG typically surges.

Looking ahead, the government is expected to convene discussions to formulate a comprehensive policy framework for the LPG sector.

Stakeholders from the energy sector and regulatory bodies may be called upon to contribute to this policy development, ensuring that future auctions are conducted within a legally sound and transparent environment.