Pakistan Begins Local Oil Exploration to Reduce Reliance on Strait of Hormuz, Says Petroleum Minister

Islamabad: Federal Minister for Petroleum Ali Pervaiz Malik has announced that Pakistan has initiated efforts to explore local oil resources in a bid to reduce its dependence on the Strait of Hormuz and strengthen the country’s energy security.

Speaking during a television program, the minister said that the government’s decision to determine petroleum product prices on a daily basis will bring greater transparency and competition to the market while helping eliminate profiteering and hoarding.

He explained that under the previous pricing mechanism, petroleum prices were revised periodically, which often led to fuel shortages at petrol pumps and allowed some traders to engage in unfair profit-making. The new system, he said, will ensure that any increase or decrease in prices is immediately passed on to consumers.

Ali Pervaiz Malik stated that stakeholders in the petroleum industry have largely welcomed the government’s initiative. He added that consultations with major industry players are ongoing and that their concerns, if any, will be addressed through dialogue.

The minister emphasized that introducing competition in any sector ultimately reduces costs and benefits consumers. He noted that the Oil and Gas Regulatory Authority (OGRA) will independently determine petroleum prices without political interference, ensuring a more transparent regulatory framework.

Responding to questions regarding the country’s oil reserves and supply chain, the minister said that Prime Minister Shehbaz Sharif has constituted a high-level committee that has already held four meetings. The government aims to move towards deregulation within the next 15 to 20 days.

He further revealed that a dedicated institution has been established to monitor the petroleum supply chain and prevent hoarding. A comprehensive petroleum sector reform package is expected to be presented to the public within a month.

Ali Pervaiz Malik also announced that Türkiye’s energy minister is expected to visit Pakistan in September or October. Pakistan plans to actively engage local companies in oil exploration projects to reduce reliance on external routes such as the Strait of Hormuz. He maintained that the country possesses commercially viable energy reserves and that work is underway to develop indigenous resources.

The petroleum minister added that indirect taxes disproportionately affect low-income citizens and stressed that such taxes should be reduced to lessen the financial burden on the public.