ISLAMABAD – Pakistan Iran long delayed gas pipeline project faces a setbackdue sanctions from the United States and federal government may notcontinue with the project under present circumstances as revealed by thePetroleum Minister.

Minister for petroleum Ghulam Sarwar has said that further progress on theIran-Pakistan gas pipeline was less likely since there were sanctions andthe matter was serious due to other political concerns.

He expressed confidence that the Iranian side would not move to theinternational court against Pakistan.

The petroleum minister said the government would readjust the price ofpetroleum products. He recalled that until 2004, diesel was cheaper thanpetrol.

The minister said prices for petrol and diesel will be set according to theratio in the international markets and taxation will also be done based onthe same. A special briefing will be held with Oil and Gas RegulatoryAuthority (Ogra) on this subject, he added.

Sarwar also announced that Pakistan Petroleum Ltd (PPL) had made a gasdiscovery in Sanghar district Sindh producing 23 mmcfd gas and 91 barrelsper day crude oil.