A petroleum ministry committee has allocated 10% of domestically produced liquefied petroleum gas (LPG) to state-owned marketing companies, while imposing a daily cap of 20 tonnes per private auction participant. The remaining 90% of local output will be sold through transparent, media-monitored auctions, according to Dawn.

State-owned buyers will procure the fuel at the producer price benchmarked to the Saudi Aramco Contract Price (CP), with supplies earmarked for remote and underserved regions. The federal cabinet approved the framework on November 4, mandating the committee to monitor daily production and report figures to the prime minister.

The Pakistan LPG Marketers Association has challenged the plan’s efficacy, noting that domestic production meets only roughly 30% of national demand and that the closure of the Iranian border has further strained supply. The association estimates the state-sector allocation at 210 tonnes per day, based on reported local output of 2,100 tonnes versus consumption of approximately 7,000 tonnes.

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