The Finance Ministry, apparently to ensure reduction in the prices of local oil and gas, has advised the Petroleum Division to change the pricing formula of oil and gas production companies by unlinking the price with dollar.
According to sources, the Finance Ministry wanted to reduce the prices of local oil and gas by linking the price of local oil and gas production with Pakistani rupees.
They said the proposed change in oil and gas production policy would cause adverse effect on the production of local oil and gas as local production would be reduced while consumption of imported oil and gas would be enhanced.
Foreign and local exploration and production (E&P) companies including the Oil and Gas Development Company Limited (OGDCL) might face serious losses if prices were delinked with dollar, sources added.
They said changes in the pricing policy for E&P companies were under consideration to ensure cheap oil and gas in the country.
