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Govt moves to end LPG monopolies, abolish quota system

Information Minister Attaullah Tarar said Prime Minister Shehbaz Sharif has ordered a transparent, merit-based LPG framework meant to open competition and ease pressure on consumers.

Zaviya Desk

· 3 min read

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Federal Information Minister Attaullah Tarar said on Tuesday that the government is moving to open up Pakistan’s liquefied petroleum gas (LPG) market by ending monopolistic practices and abolishing the long-running discretionary quota system.

Speaking at a news conference in Islamabad with Federal Petroleum Minister Ali Pervaiz Malik, Tarar said Prime Minister Shehbaz Sharif had ordered a merit-based and transparent framework for the LPG sector. The aim, he said, is fairer competition and easier access for consumers who rely on bottled gas for cooking and heating.

What the ministers announced

Tarar described the shift as historic, arguing that earlier governments had not tried to break the hold of a few players or replace discretion with a competitive, merit-based mechanism. He framed the quota overhaul as part of a wider push for transparency in the energy economy.

He also said the government had, for the first time, begun transferring profits earned by oil refineries to the public. On fuel prices more broadly, he said the prime minister had sought to shield households during a global energy squeeze and to avoid fresh financial strain on consumers.

Subsidies, regulation and winter gas

According to Tarar, the government first provided subsidies worth Rs133 billion to stop petrol and diesel prices from rising and to keep fuel available. Officials later moved to a targeted approach through the Fuel Relief Scheme, directed at deserving and underprivileged groups.

He said structural reforms were also under way to improve oversight. In that context, he noted that the Oil and Gas Regulatory Authority (OGRA), which regulates oil and gas pricing and licensing, had started publishing all relevant details on its website—something he called unprecedented in Pakistan.

Tarar added that the prime minister had ordered a comprehensive strategy for gas supply in winter and told federal ministers to speed up relief measures. Asked about the petroleum levy—a federal tax on fuel—he said the premier had arranged temporary relief, including a temporary cut in the levy, under difficult fiscal conditions.

Broader reform claims at the briefing

Turning to taxation, Tarar said reforms in the sugar sector had yielded an extra Rs60 billion in tax revenue for the first time. He said profitable sectors able to pay taxes were being urged to meet their dues, while other steps were being prepared to ease the public’s financial load.

He linked these moves to a larger agenda of clearer rules, stronger tax collection and a fairer sharing of economic responsibility. On separate political talks with Jamaat-e-Islami, he said issues had been discussed and the party had been asked to submit proposals, solutions and technical recommendations, with further relief to be weighed where feasible.

Tarar also spoke about Gilgit-Baltistan, saying the prime minister had reviewed development work there. He cited a 100-megawatt power project, solar panels funded with billions of rupees, ongoing work on the Jaglot-Skardu Road, new transport corridors and Danish Schools, plus an investigation into a recent incident in the region. He said the Attorney General had been told to pursue pending cases tied to the new system so legal hurdles do not block public relief.

Aasan alfaaz mein

Sarkar kehti hai ke LPG ka purana quota system khatam kiya ja raha hai. Ab merit aur competition ke zariye zyada companies kaam kar saken gi. Is se logon ko gas cylinder milne mein asani hone ka daawa hai. Sardi ke liye gas supply ka plan bhi tayyar karne ka hukm diya gaya hai.

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Attaullah Tarar said it is ending monopolistic practices and abolishing the discretionary quota system in favour of a merit-based, transparent setup ordered by Prime Minister Shehbaz Sharif.

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