ISLAMABAD: The Petroleum Division on Friday clarified that a transparent and competitive mechanism for allocating locally produced liquefied petroleum gas (LPG) remains a government priority, rejecting what it described as an inaccurate impression conveyed in a recent news report about the proposed mechanism.
The report claimed that Prime Minister Shehbaz Sharif had rejected a proposal by the Petroleum Division to auction LPG produced by state-owned entities (SOEs), citing the absence of an appropriate legal and policy framework. It further stated that the prime minister had called for comprehensive policy changes supported by a legal and regulatory framework before any transaction could proceed.
However, the Petroleum Division said the impression conveyed in the report regarding the proposed LPG allocation mechanism was inaccurate.
In a statement, the division said the government remained committed to disposing of locally produced LPG through a transparent, competitive process to ensure a level playing field for industry participants and address the concentration of locally produced supplies among a limited number of market players.
The division said it had submitted a set of measures to improve LPG supplies in the domestic market. One of the proposals involves introducing a transparent and competitive mechanism for disposing of locally produced LPG while ensuring its availability in remote and hilly areas in accordance with the LPG Policy 2016.
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According to the statement, the proposed mechanism aims to promote fair competition, improve transparency in the allocation of locally produced LPG and ensure that upstream enterprises receive a fair return on their resources.
The initiative is intended to provide equitable opportunities to all market participants rather than allowing the benefits of locally produced LPG to remain concentrated among a few companies, the division added.
The Petroleum Division also noted that the matter was currently being pursued through the courts, adding that the government reserved the right to exercise all available legal options in accordance with the law.
Reaffirming its commitment to market efficiency, the division said the government would continue pursuing measures to establish a fair and transparent business environment while protecting consumer interests.
It stressed that public welfare remained the foremost priority of Prime Minister Shehbaz Sharif’s government, particularly in improving LPG availability and distribution while ensuring continued access for consumers in remote and hilly regions.
The division said the proposed initiative should be viewed in the broader context of promoting transparency, fair competition and improved market supplies, subject to the applicable legal framework and the public interest.