Govt announces deregulation of fuel prices

Islamabad: The government has announced a plan to deregulate petroleum product prices, allowing oil marketing companies (OMCs) to compete in the market while keeping a price cap in place to ensure stability.

This move is part of broader efforts to reduce fuel costs and enhance market efficiency. Additionally, the government intends to allow oil refineries to blend up to 5% ethanol into petroleum products, aiming to attract investment and address inefficiencies in the energy sector.

At the annual Oil and Gas Conference in Islamabad, Petroleum Minister Musadik Malik highlighted Pakistan’s lack of progress in offshore oil and gas exploration. In the past 60 years, only 18 offshore wells have been drilled, a stark contrast to neighboring countries that have made significant discoveries. To address this, Pakistan is set to auction 40 offshore exploration blocks, along with 31 onshore blocks, in a bid to boost domestic energy production.

The Council of Common Interests (CCI) is expected to approve a new tight gas policy at its upcoming meeting, with efforts also underway to tap into the country’s tight and shale gas resources. The Oil and Gas Development Company Limited (OGDCL) has already made a discovery of shale gas reserves.

In addition to these efforts, Pakistan is advancing its renewable energy initiatives, focusing on green hydrogen and blue hydrogen production. A biofuel policy is also set to be approved soon as part of the country's transition to sustainable energy solutions.

Malik further warned about the rapid melting of glaciers, which could significantly impact Pakistan’s canal system, stressing the need to integrate environmental sustainability into all energy policies. He called for increased reliance on domestic resources to ensure long-term stability in the energy sector.

The minister also criticized bureaucratic inefficiencies and urged a move away from outdated governance models, calling for greater private sector involvement in energy development. He outlined three key objectives for the energy sector: ensuring energy availability, making energy affordable for consumers, and ensuring the sustainability of energy supplies.

Malik emphasized the need for innovation and unity to achieve these goals, saying that only by abandoning inefficiency can Pakistan make progress.