The Senate Standing Committee on Petroleum on Monday deliberated on matters relating to the national stock position of petroleum products, gas supply to producing areas, PMDC Board of Governors’ selection criteria, LPG pricing concerns, and the suspension of CNG supply in Khyber Pakhtunkhwa.
The committee received a detailed briefing on the current stocks and import position of crude oil, petrol, diesel, LNG, and LPG.
Federal Minister for Petroleum Ali Pervaiz Malik informed the committee that due to the absence of a permanent ceasefire in the US-Iran conflict and related import constraints, the government had been compelled to prioritize critical sectors.
He said gas supply had been diverted to urea production units to avert a fertilizer crisis, particularly amid constraints in DAP imports.
The committee was further briefed on import shares of petroleum products from various countries. Members observed that the recent increase in petroleum prices, despite available stocks, appeared to have financially benefited oil marketing companies (OMCs).
The minister, however, said that the price adjustment was intended to provide fiscal space and liquidity to OMCs in order to avoid fuel shortages amid volatility in international markets.
The committee was informed that an LNG cargo was expected to arrive at Karachi Port the following day. Members urged authorities to conduct a comprehensive audit of OMCs to assess financial gains from existing stocks after the price hike.
It was also informed that a joint stock-taking mechanism involving OGRA, FIA, IB, and other agencies had been established to monitor stocks on a fortnightly basis. The chairman directed that all stock reports be submitted to the committee.
The committee also questioned the petroleum pricing mechanism, seeking details of the formula used for determining fuel prices.
During discussion on gas supply, officials said the government, through the National Crisis Management Cell (NCMC), had prioritized uninterrupted domestic supply, especially during meal preparation hours. However, members expressed concern over prolonged gas outages in Balochistan and uneven distribution.
The issue of non-provision of gas connections in producing areas was also raised. Members observed that despite directives from the prime minister and rulings of the Supreme Court, affected communities were still deprived of connections. Officials cited non-availability of funds as the reason for the delay, and the committee decided to take up the matter with relevant stakeholders.
The committee was also briefed on the selection process for the PMDC Board of Governors and took notice of varying charges imposed by PMDC on coal mining contractors in Balochistan. The chairman questioned the rationale behind differential pricing and said he would engage stakeholders to resolve the issue.
The suspension of CNG supply in Khyber Pakhtunkhwa was also discussed, with members noting its adverse impact on low-income groups. Officials linked restoration of supply to the availability of imported RLNG, which had been affected due to regional tensions and closure of the Strait of Hormuz.
The committee further questioned gas allocation to RLNG-based power plants in Punjab, seeking clarification on priority distribution, including reference to the Jamshoro Power Plant.