Petroleum Minister Ali Pervaiz Malik said on Wednesday that the government has finalized plans to gradually shift the country’s oil supply system from road-based transportation to a pipeline network in an effort to reduce costs and improve efficiency. He shared these details while briefing the media on the overall performance and reform agenda of the petroleum sector.
The minister explained that the move toward pipeline distribution is expected to significantly cut transportation expenses, which would ultimately provide relief to consumers. At present, diesel supply relies entirely on road transport, while petrol distribution depends on transport for nearly 60 percent of deliveries, making the system costly and vulnerable to inefficiencies.
According to the Petroleum Division, the first phase of the project will involve laying a pipeline from Faisalabad to Thal. Alongside infrastructure development, a tracker system has been introduced to curb illegal oil supply chains and improve transparency across the sector.
Malik noted that recent reforms have already produced positive results, including stabilization of gas prices and the elimination of circular debt in the gas sector.
The minister stressed that payments must be cleared for fuel already consumed, whether by government entities or private consumers. To resolve outstanding payment issues involving three state-owned companies, a high-powered committee has been formed to ensure timely settlements and prevent future accumulation of liabilities.
Efforts are also underway to attract fresh investment into the petroleum sector, with particular attention on fixing structural issues within the oil supply chain and oil marketing companies.
Malik said long-standing payment disputes between oil marketing companies and the Federal Board of Revenue are being addressed, and several meetings have already been held with the Finance Ministry.
He added that visible progress on these initiatives is expected within the next week to ten days. A new policy for the LPG industry is also being prepared, as the sector remains deregulated while prices are regulated. Malik further emphasized the need for a long-term mining policy and raised questions over delays in spending on the Reko Diq project.
