ISLAMABAD -  Federal Petroleum Minister Musadik Malik Tuesday said that after a decade, Pakistan has offered 71 blocks for bidding, including 40 offshore and 31 onshore, and announced that the government is deregulating fuel prices allowing the OMCs to sell oil at lower prices than OGRA’s determined rates. “However, to ensure the market stability and protect the consumers from inflated prices, the government will maintain a price cap,” the minister said this while speaking annual Annual Technical Conference & Oil Show 2024.

The two-day 30th Annual Technical Conference & Oil Show 2024 was organised by Pakistan Association of Petroleum Geoscientists (PAPG) and Society of Petroleum Engineers (SPE) Pakistan. This year, around 1,500 delegates from E&P, Services Companies, Regulatory Authorities and Academia have attended the conference.  Industry experts have participated and addressed the issues to enhance the exploration and production of oil and gas including a dedicated session on renewable resources in the country during the oral sessions. Moreover, 34 professional papers, 30+ student papers and 02 panel discussions were conducted, whereas oil show entailed 50 stalls followed by Grand Gala Dinner.

Malik said that the government will bring two policies related to fuel prices— one is related to the deregulations of oil prices, while another is related to allowing refineries to blend five percent ethanol in petrol. Musadik Malik announced that the government is introducing a policy to deregulate fuel prices, allowing oil marketing companies (OMCs) to sell fuel at competitive rates to increase their market share. OMCs will also be allowed to set competitive prices and sell petrol and diesel below the government’s announced rates,t he minister said. Musadiq also announced that an affordable fuel option would be introduced specifically for motorcycles.

Similarly, he said that refineries would be permitted to blend up to five percent ethanol in petroleum products to help reduce fuel prices. The minister emphasised the need for Pakistan to reduce state involvement in business operations, advocating for a shift toward electrification, liberalisation, and the utilisation of domestic energy resources. He reaffirmed the government’s commitment to privatising Pakistan International Airlines (PIA) and modernising the oil and gas sector to attract investment and improve efficiency.  

Malik highlighted that after a decade, the government has offered 71 concessions to attract investment. These concessions include 40 offshore and 31 onshore exploration blocks, he added. He also noted that efforts are underway to develop tight and shale gas resources, with the Oil and Gas Development Company Limited (OGDCL) having recently discovered a shale gas reserve. He expressed optimism that the upcoming meeting of the Council of Common Interests (CCI) would approve the tight gas policy. The minister stressed that Pakistan is working on green and blue hydrogen projects, with a biofuel policy expected to be approved soon. He also emphasised the importance of investing in science and research for sustainable development.  

The minister also warned that the rapid melting of glaciers could devastate Pakistan’s canal system, urging that all energy initiatives consider environmental sustainability. He reiterated the need for the country to rely more on domestic resources to ensure long-term stability.  Musadik criticised bureaucratic inefficiencies and called for greater reliance on the private sector. “The way we try to run this country, wouldn’t even sustain a small retail shop,” he remarked, emphasising that economic reforms require a departure from outdated governance models.  

He outlined three key objectives for the energy sector— ensuring energy availability for the public; making energy affordable for consumers and guaranteeing sustainability in energy supply. The minister stressed the importance of moving away from a rigid, bureaucratic approach, stating that Pakistan must cultivate a mindset of innovation and unity to progress. “If we want to develop, we must abandon a culture of inefficiency and embrace forward-thinking policies,” he concluded.