A committee tasked with addressing issues in the petroleum sector has recommended introducing a fuel price adjustment mechanism in gas bills, similar to the one in electricity bills.

The decision was made during a meeting chaired by Deputy Prime Minister Muhammad Ishaq Dar, where challenges faced by exploration and production (E&P) companies were discussed.

The meeting included ministers of petroleum, finance, and energy, along with other public and private sector members.

Ishaq Dar emphasised the importance of the energy sector for economic growth and highlighted the need to support both local and foreign companies to attract further investment.

E&P company heads expressed concerns over the sector’s security and stability due to rising circular debt.

Private sector members of the committee also stressed the need to open the downstream gas sector to private companies to improve its stability.

The forum instructed the Petroleum Division to propose amendments to the OGRA Ordinance, allowing for a mechanism to adjust gas rates monthly or quarterly.

On security concerns, the committee directed the Interior Division to work closely with E&P companies and stakeholders to ensure secure operations, particularly in challenging areas.

The Interior Division was also tasked with developing a one-window facility at both federal and provincial levels to ensure security in these areas.