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The federal government has decided to introduce a competitive system for locally produced liquefied petroleum gas (LPG), ending a decades-old monopoly, as part of a series of major decisions taken by the federal cabinet in Islamabad on Wednesday, 4 November 2026. Prime Minister Shehbaz Sharif chaired the meeting, which focused on energy supplies for the winter, relief for consumers and development and security in Khyber Pakhtunkhwa.
The government is making extensive arrangements to maintain uninterrupted supplies of liquefied natural gas (LNG), LPG and oil through the winter season. Officials said the task has become more challenging because of surging international prices and disruptions to maritime routes. To keep a close watch on the situation, meetings will be held every two to three days to assess the country’s energy needs and to review supply arrangements.
Under the new LPG arrangement, locally produced gas will be offered through competitive and transparent auctions under supervision. Importing companies will be required to follow the prescribed procedures. The change is intended to end the long-standing monopoly in the sector, increase competition and bring greater transparency to the market.
Another important development was the government’s decision to avoid a proposed Rs15-per-litre increase in petrol prices. Petroleum Minister Ali Pervaiz Malik, the Oil and Gas Regulatory Authority (OGRA) and the relevant committee worked with refineries to share windfall profits, instead of passing the additional burden on to consumers. The move is expected to protect motorists and households from a further rise in fuel costs at a time when prices are already high.
The cabinet also finalised a comprehensive Rs160 billion development and security package for Khyber Pakhtunkhwa. The package is aimed at supporting development work and strengthening security arrangements in the province.
Separately, the cabinet ratified the Pakistan-Kuwait defence cooperation agreement, originally signed on 11 June 2023. Kuwait had already ratified the agreement, which has a five-year term with automatic renewal.
The latest decisions reflect the government’s efforts to manage energy challenges, protect consumers from additional costs and support development and security in Khyber Pakhtunkhwa.
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