ISLAMABAD: Federal Minister for Petroleum, Musadik Malik Tuesday announced the auction for 71 oil and gas exploration blocks — 40 offshore and 31 onshore — while also unveiling plans to deregulate fuel prices.
He made the announcement at the Annual Oil and Gas Conference.
He pointed out that Pakistan has drilled only 18 offshore wells in the past 60 years. The government is now offering 40 offshore blocks for bidding, providing investors with an opportunity to tap into the country’s largely unexplored maritime energy reserves. Additionally, 31 onshore blocks have been made available to further expand domestic oil and gas production.
Malik emphasised that a large portion of Pakistan’s energy resources remains undiscovered, and the government is committed to facilitating exploration efforts by offering incentives to investors. He also underscored the importance of adopting advanced technology and modern drilling techniques to optimise energy extraction.
In a parallel policy shift, the government is moving towards deregulation of petroleum prices, allowing market forces to play a greater role in determining fuel rates. Malik explained that a pricing cap mechanism will be introduced to prevent excessive price fluctuations while fostering competition among oil marketing companies (OMCs).
“The government must step back from business operations and transition to a governance model that encourages market-driven growth,” he remarked, signaling a reduced role for state intervention in fuel pricing.
To further support lower-income groups, Malik announced the introduction of a subsidised fuel option specifically for motorcycle users, a segment that makes up the majority of Pakistan’s daily commuters.
These policy changes have been formulated in consultation with Prime Minister Shehbaz Sharif and reflect the government’s broader vision of fostering economic stability, ensuring energy security, and reducing costs for consumers.
The petroleum minister reiterated that making energy accessible and affordable, particularly for underprivileged segments of society, remains a top priority.
Copyright Business Recorder, 2025
Comments