Islamabad, Feb 19: Pakistan’s oil sector is set for partial deregulation as the federal government introduces a new pricing framework aimed at increasing competition among oil marketing companies. Federal Minister for Petroleum Musadik Malik announced that a price cap will be implemented, ensuring that fuel remains affordable while allowing companies to compete by offering lower petrol and diesel prices to gain a larger market share.
The move is expected to bring a shift in the country’s oil industry, encouraging competitive pricing strategies while maintaining stability at the pumps. The minister emphasized that the policy aims to benefit consumers by driving down fuel costs through market-driven mechanisms rather than full government control.
In addition to the deregulation framework, Malik revealed that the government is finalizing a biofuel policy, which is expected to be unveiled soon. The policy will focus on promoting alternative fuel sources, reducing dependence on traditional fossil fuels, and aligning with global trends toward sustainable energy solutions.
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Furthermore, the minister highlighted that a pilot tight gas policy is in the works and will be presented for approval at the upcoming Council of Common Interests (CCI) meeting. Tight gas, which refers to natural gas trapped in low-permeability rock formations, could become a crucial component of Pakistan’s energy strategy, offering a potential solution to the country’s growing energy demand.
Under the proposed regulatory changes, OGRA (Oil & Gas Regulatory Authority) and the Competition Commission of Pakistan (CCP) will take on a more active role in ensuring fair competition, preventing market collusion, and maintaining fuel quality and availability. The increased oversight is expected to protect consumers from potential price manipulation while still allowing oil companies to operate with greater flexibility.
As the government moves towards a more market-oriented fuel sector, industry stakeholders and consumers will be watching closely to see whether the deregulation efforts lead to real benefits in terms of pricing, supply stability, and overall market efficiency. The impact of these measures will depend on how effectively regulatory bodies enforce fair competition and how oil companies respond to the new pricing mechanism.
