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Govt to open gas sector to competition, Malik tells media

Federal Petroleum Minister Ali Pervaiz Malik said a fuel-style relief mechanism is planned for gas, with competition in imports and expected news on petrol and diesel prices.

Zaviya Desk

· Updated · 3 min read

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Federal Petroleum Minister Ali Pervaiz Malik has said the government plans gas relief for Pakistan on lines similar to the mechanism already introduced for fuel, while signalling that news on petrol and diesel prices was expected the same day.

Speaking to the media in Islamabad, Malik said the government would bring a relief approach in the gas sector comparable to the one used for fuel. He framed that step as part of a wider push to import fuel more cheaply through a competitive process and to pass savings on to consumers.

What the minister said about cartels and pricing

Malik alleged that a cartel had operated in the petroleum sector for about 50 years, allowing a small group to earn billions of rupees. He said some people who made large profits then sought cover through court stay orders, and that certain individuals had approached the petroleum minister for quotas and oil-tanker allocations.

He argued that fuel could not sensibly be sold locally at Rs500 a litre when the international market price stood at Rs1,000. The comparison was offered to underline why pricing and import policy matter for what households and transporters pay.

Competition, imports and transparency

According to the minister, a decision has been taken to introduce competition in fuel imports and to open the gas sector to competition. He said the government’s priority was to bring in cheaper fuel from abroad and to share that benefit with consumers.

Malik also said Prime Minister Shehbaz Sharif was working to make the system more transparent. He did not announce a start date, tariff schedule or detailed design for the planned gas measure in the remarks summarised here.

Dealers demand a refinery audit

Separately, petroleum dealers meeting in Karachi called for a forensic audit of oil refineries’ profits. Participants including Malik Khuda Bakhsh and Anwar Kamal said a transparent review of refinery finances was needed to establish actual earnings.

Malik Khuda Bakhsh claimed refineries had made profits equal to a full year’s earnings in only three months. Anwar Kamal said consumers could receive relief of Rs40 to Rs50 a litre on petrol if the issue were properly examined. Dealers argued that the minister’s comments supported their concerns about excessive refinery profits and urged a full audit so that further costs are not loaded onto the public.

Those dealer figures are claims about what an audit might allow, not a notified price change. Any link between the proposed gas relief for Pakistan and a specific cut in household gas bills has not yet been spelled out in official detail.

Aasan alfaaz mein

Petroleum minister Ali Pervaiz Malik ne kaha hai ke sarkar gas sector mein bhi petrol wali relief jaisa nizam lana chahti hai. Unhon ne kaha ke fuel aur gas dono mein competition barhaya jayega taake sasta maal aaye aur faida logo tak pahunche. Petrol aur diesel ke bare mein usi din achhi khabar ka ishara bhi kiya gaya. Karachi ke dealers ne refineries ki audit maangi aur kaha ke audit se petrol Rs40 se Rs50 sasta ho sakta hai—yeh unka daawa hai, abhi official rate change nahi.

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He said the government plans to introduce a relief mechanism in the gas sector similar to the one already introduced for fuel.

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