Government explores lower-cost energy supplies while promising continued fuel price relief
Petroleum Minister Ali Pervaiz Malik has said Pakistan is considering importing cheaper oil and gas from Iran following the temporary easing of United States sanctions on Tehran, a move that could reduce the country’s energy import costs.
Speaking to reporters in Lahore, Malik said the government is evaluating multiple options to lower fuel prices and provide financial relief to consumers. He added that officials are actively exploring opportunities to secure affordable energy supplies for Pakistan.
The minister’s remarks have renewed discussions about importing discounted Iranian crude, which local refineries could process into petroleum products for domestic consumption.
According to industry estimates, Pakistan could save between $170 million and $340 million in annual import costs if 10 to 20 percent of its petroleum requirements are met through discounted Iranian crude, including lower freight expenses.
Industry identifies operational challenges
Despite the potential savings, energy experts cautioned that several commercial and technical challenges remain before such imports can begin.
They noted that although Pakistan’s refineries can process Iranian crude, the oil generally produces a higher proportion of furnace oil, a product facing limited domestic demand. Analysts said authorities would need to address storage, marketing, and refining considerations before implementing any import arrangement.
Meanwhile, industry stakeholders stressed that commercial viability would depend on pricing, logistics, and long-term supply agreements.
Government promises further public relief
Malik also addressed recent fluctuations in domestic fuel prices, acknowledging that higher petrol and diesel prices had created difficulties for consumers.
However, he said the situation has improved significantly and expressed confidence that conditions would continue to stabilize.
“That difficult phase has passed. Good times are coming now,” the minister said, adding that the government had already reduced petrol and diesel prices.
He further maintained that the recent reductions in domestic fuel prices exceeded the decline recorded in international oil markets, reflecting the government’s commitment to easing the financial burden on the public while pursuing affordable energy procurement options.
