The government has unveiled a plan to shift the country’s oil supply system from road transport to pipelines, a move aimed at reducing transportation costs and providing relief to consumers.
According to the Petroleum Division, diesel supply across Pakistan is currently 100 percent dependent on road transport, while around 60 percent of petrol supply relies on transportation by tankers. Under the new plan, oil movement through pipelines will be expanded in phases. In the first phase, a pipeline will be laid from Faisalabad to Tahlian.
To curb illegal oil supply chains, the government has also initiated the implementation of a tracking system to monitor fuel movement more effectively.
Federal Minister for Petroleum Ali Pervaiz Malik shared these details while briefing journalists on the petroleum sector. He said that a reform agenda in the petroleum sector has already been implemented, resulting in stability in gas prices.
The minister stated that the flow of circular debt in the gas sector has been brought down to zero. However, he emphasized that fuel already consumed, whether by the government or consumers, must still be paid for.
Ali Pervaiz Malik further said that a high-powered committee has been formed to address payment-related issues of three government-owned companies. He added that steps are being taken to attract new investment into the sector, while special focus is being given to resolving issues faced by the oil supply chain and oil marketing companies (OMCs).
He noted that OMCs are facing payment-related issues with the Federal Board of Revenue (FBR). Several meetings have already been held with the Ministry of Finance on this matter, and progress is expected within the next 1-10 days.
Regarding the LPG sector, the petroleum minister announced that a new policy will be introduced. He explained that while the LPG sector is currently deregulated, prices are still being regulated.
Ali Pervaiz Malik referred to the Reko Diq project and stressed that long-term policies are essential for the sustainable development of Pakistan’s mining sector.
