ISLAMABAD: The government is expediting consultations on deregulating the petroleum sector and establishing uniform gas prices across local and imported supplies for the processing industry, including wellhead gas, piped gas, and liquefied natural gas (LNG).
Prime Minister Shehbaz Sharif has tasked the Petroleum Division with formulating proposals to achieve deregulation in the sector and consistent pricing across gas sources. A high-level meeting, chaired by the Prime Minister’s Office, reviewed these priorities, which have been discussed in previous meetings.
The main points of the briefing covered the proposed deregulation of petroleum prices and a mechanism for unified gas pricing. Presently, the petroleum sector is regulated except for kerosene and furnace oil. Initial discussions suggest that ex-refinery deregulation could be extended to ex-depot pricing, though dealers have expressed concerns over increased competition under deregulation.
The government is also considering uniform gas prices for the industry, despite challenges with wellhead gas pricing due to various petroleum policies governing exploration agreements. While a uniform rate for piped gas and LNG may be feasible, previous legislative efforts to standardize gas costs have faced provincial resistance, especially from Sindh.
Industry officials noted that bureaucratic disagreements in the Petroleum Division have further complicated progress. Petroleum Minister expressed frustration over limited involvement in key decisions, particularly regarding offshore petroleum block bidding and reports on LPG plants.
Story by Zafar Bhutta
