Federal Minister for Petroleum Musadik Malik said Pakistan’s oil sector will be partially deregulated. He said a price cap will be implemented to encourage competition among oil marketing companies while making sure that fuel is available for cheap at pumps.
The federal minister explained that companies will be required to offer cheaper petrol and diesel to capture a larger market share. He said this would potentially lead to lower fuel prices for the public.
The minister also revealed that the government is finalizing a biofuel policy, which will be unveiled soon.
A pilot tight gas policy is set for approval in the upcoming Council of Common Interests (CCI) meeting, the petroleum minister added.
Under this framework, OGRA and the Competition Commission of Pakistan would play a larger role in ensuring product quality, availability, and competitive pricing to prevent market collusion.