Govt to introduce fuel price adjustment in gas bills

ISLAMABAD: A committee formed to address challenges in the petroleum sector has directed the implementation of a fuel price adjustment (FPA) mechanism in gas bills as well.

The decision was made during a meeting of the committee chaired by Deputy Prime Minister Ishaq Dar, where the issues faced by exploration and production (E&P) companies in the petroleum sector were discussed.

The meeting was attended by the ministers of petroleum, finance, revenue, energy, and other key public and private sector members of the committee.

Ishaq Dar emphasised the importance of the petroleum sector for the country’s energy security and economic development.

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He reiterated the government’s commitment to facilitating local and foreign companies, which he believes will attract more investment into the sector.

During the meeting, heads of local and foreign E&P companies expressed concerns regarding the security and stability of the sector, particularly due to the rising circular debt.

Private sector members also raised issues concerning the downstream gas sector, stressing the need to open the sector to private companies to enhance its sustainability.

In response, the forum directed the Petroleum Division to propose necessary amendments to the OGRA Ordinance to introduce a mechanism for adjusting gas rates on a monthly or quarterly basis.

Addressing security concerns, the forum instructed the Interior Division to collaborate closely with E&P companies and other stakeholders.

The committee also tasked the Interior Division with developing a dedicated one-window facility system at both federal and provincial levels to ensure security for operations in challenging areas.