Addressing a press conference in Islamabad, Sarwar recalled that until 2004, diesel was the cheaper fuel, while petrol was expensive. He said that after 2004, diesel prices began rising as petrol became cheaper.
“Petrol is used by the more well-off sections of society whereas diesel is the comman man’s fuel. It is used in transportation, agriculture, tubewells and tractors,” he said, highlighting its economic importance.
“Prices [for petrol and diesel] will be set according to the ratio in the international markets and taxation will also be done based on the same,” he said.
Sarwar also announced that Pakistan Petroleum Limited had made a gas discovery in Sindh’s Sanghar district with an initial outflow of 91 barrels a day.
He said that currently Pakistan relies on 85 per cent imported petroleum products and is only producing 15pc of the required amount.
Raising local production and reducing imports will remain the ministry’s forefront challenge, he said, adding that the Oil and Gas Development Company (OGDCL), the leading public sector company in exploration, will have to play an important role for this to be possible.