The impression conveyed in a recent news article regarding the proposed LPG allocation mechanism is inaccurate. The transparent mechanism for the disposal of locally produced LPG through a competitive process remains a priority of the Government, as it would ensure a level playing field for the industry and address the existing capture whereby locally produced LPG is concentrated among a few market players.
The Petroleum Division has submitted a set of measures to improve the supply position in the market. One of these measures is the disposal of locally produced LPG through a transparent and competitive process, while ensuring the availability of the product for far-flung and hilly areas in accordance with the LPG Policy 2016.
The proposed mechanism aims to promote fair competition, enhance transparency in the allocation of locally produced LPG and ensure that upstream enterprises obtain a fair return on their resources. It is intended to provide equitable opportunities to all market participants rather than allowing the benefits of locally produced LPG to remain concentrated amongst limited players.
The matter is currently being pursued through the courts, and the Government reserves the right to exercise all available legal options in accordance with the law. The Government remains committed to pursuing measures that improve market efficiency, ensure a fair and transparent business environment, and protect the interests of consumers.
Public welfare remains Prime Minister Shehbaz Sharif Government’s foremost priority. The objective is to improve the availability and distribution of LPG while ensuring that consumers in far-flung and hilly areas continue to have access to the product in line with the LPG Policy 2016. The initiative should therefore be viewed in its larger context: as a measure to promote transparency, fair competition and improved market supply, with due regard to the applicable legal framework and the interests of the public.
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