ISLAMABAD: As round a dozen present licensees largely stay non-operational, three new corporations have utilized for licenses to promote pure fuel following coverage adjustments that permit larger non-public participation within the fuel community.
The Oil and Fuel Regulatory Authority (Ogra) has formally admitted functions from Blue Fuel (Pvt) Ltd, Essen Fuel Advertising & Distribution Ltd and Grasp Advertising Worldwide for licenses to undertake the regulated exercise of pure fuel gross sales.
Of their functions, the businesses stated they might use the pipeline networks of the 2 public-sector utilities — Sui Northern Fuel Pipelines Ltd (SNGPL) and Sui Southern Fuel Firm Ltd (SSGCL) — to move fuel produced from native fields to customers as permitted below the Third-Occasion Entry Guidelines, the Pakistan Fuel Community Code and digital networks. Such preparations are allowed below the 2012 petroleum coverage, just lately amended by the federal cupboard.
Ogra has scheduled a public listening to for Jan 16 and invited feedback from stakeholders earlier than deciding on the grant of licenses.
The regulator has already issued a couple of dozen licenses to non-public corporations for the sale of pure fuel, however just one firm — Common Fuel Distribution Firm (UGDC) — has been in a position to virtually enter into fuel sale and buy agreements with producers, customers and transporters like SNGPL and start industrial operations.
SNGPL and SSGCL, which loved a authorized monopoly over fuel gross sales and distribution for many years, formally misplaced exclusivity in 2010. Nonetheless, the enabling authorized and regulatory framework for third-party participation remained weak for a lot of the next decade, successfully preserving their dominance till final yr.
In January 2025, the Govt Committee of the Nationwide Financial Council (Ecnec), led by Deputy Prime Minister Ishaq Dar, accredited the sale of 35 % of latest fuel finds to third-party non-public entities by means of a bidding course of. The transfer was geared toward easing liquidity challenges on exploration and manufacturing (E&P) corporations and attracting $4-5 billion in recent funding in offshore exploration.
In January 2024, the Council of Widespread Pursuits (CCI) — comprising the chief ministers of all 4 provinces — allowed E&P corporations to promote reserves to 3rd events and directed the petroleum division and fuel utilities to develop a framework for the sale of 35pc of unallocated fuel to 3rd events and get it accredited by the Ecnec.
The 2 public-sector fuel utilities had been delaying the implementation and lobbied to reverse the CCI determination for nearly a yr, however Mr Dar-led Ecnec lastly concluded that neither the council’s determination could possibly be reversed nor a potential $4-5bn funding in offshore blocks could possibly be postponed. The federal government has since awarded round two dozen exploration licenses, each in offshore and onshore basins, to native and worldwide corporations.
Revealed in Daybreak, January fifth, 2026
