Pakistan to replace LPG quota system with competitive auctions

Pakistan plans to replace quotas for locally produced LPG with competitive auctions and expand imports to ease shortages and high retail prices before winter, Profit by Pakistan Today reported. Petroleum Minister Ali Pervaiz Malik said state-owned companies would source additional supplies from international spot markets, while private importers would also be encouraged to participate.

The new system would auction domestic LPG in lots of five and 10 tonnes, with results disclosed under regulatory oversight. Pakistan State Oil, SSGC LPG and Pakistan LNG Limited have been asked to arrange bulk imports, and importers must publish monthly costs, including benchmark prices, premiums and freight. The government also plans to direct additional auction revenue to funds for price stabilisation and subsidised supplies to eligible consumers.