Gas and Petroleum Market Structure and Pricing

Research Reports
Author: PIDE
Publication Year : 2021

Oil and gas play a prominent role in the energy matrix of Pakistan. In FY2019, oil and gas account for 61 percent of final energy supplies and 63 percent of final energy consumed (Chart 1 and Chart 2). With limited oil resources and declining gas reserves, dependence on imports is increasing. The supply chain of both petroleum and gas consists of a number of activities connected with the flow of goods and services from the raw material stage till the final product reaches the consumer. It involves the interactions of independent companies; various structures are typically involved in the supply chain (Figure 1). An important variable in the constitution of the chain is the financial as well as contractual obligations of these companies and of course responsibilities of the regulator to monitor those obligations. The problem at any point may have its impact at the final consumer end. This report provides an overview of the oil and gas market structure.