It is not the government that buys and sells petroleum, but rather various companies. If the government does not reduce the price, it will benefit the petroleum companies. The government only adds a petroleum levy as part of its commitment to the International Monetary Fund (IMF).
Related: How Petrol Prices Are Set?
No oil and gas reservoirs were discovered in the offshore drilling at Kekra
Both success and failure are normal parts of mineral exploration operations. It was disappointing that $100 million had been wasted on the offshore drilling at Kekra, where a joint venture of four oil exploration companies (ExxonMobil, ENI, Oil, and Gas Development Company, and Pakistan Petroleum Limited) failed to find oil and gas reserves after four months of drilling. While it was understandable to be disappointed by the outcome of this project, it was important to recognize that success and failure are a normal part of mineral exploration operations. In fact, the global success rate for such projects is generally between 30% and 40%. It was also worth noting that India found oil reserves on its 43rd attempt at an offshore well, Saudi Arabia found its first oil reserve on its 7th attempt, and Norway drilled 78 holes before hitting it big. The cost of extracting oil can vary significantly, with the cheapest being Saudi oil at under $10 per barrel and the most expensive being Russian oil at over $60 per barrel. Ultimately, it was important to keep in mind that it may not always be financially or environmentally beneficial to extract oil, and it was important to consider alternative energy sources.
