Federal Minister for Petroleum, Musadik Malik, announced that Pakistan’s oil sector will undergo partial deregulation, with a price cap mechanism to encourage competition among oil marketing companies. The move aims to ensure affordable fuel availability at pumps while fostering a competitive market environment.
Speaking about the initiative, the minister explained that oil companies will be incentivized to offer cheaper petrol and diesel to capture a larger market share. This competition, he said, could potentially lead to lower fuel prices for the public.
The minister also revealed that the government is in the final stages of drafting a biofuel policy, which will be unveiled soon. Additionally, a pilot tight gas policy is set to be presented for approval at the upcoming Council of Common Interests (CCI) meeting.
Under the new framework, the Oil and Gas Regulatory Authority (OGRA) and the Competition Commission of Pakistan (CCP) will play a more prominent role in ensuring product quality, availability, and competitive pricing. The enhanced oversight is intended to prevent market collusion and ensure fair practices in the oil sector.
