News Detail
Event Title: Senator Umer Farooq, Chairman Senate Standing Committee on Petroleum, presiding over the meeting of the committee at Old PIPS Hall, Parliament Lodges, Islamabad.
Event Date: 2026-05-11
A meeting of the Senate Standing Committee on Petroleum was held at Parliament House under the chairmanship of Senator Umer Farooq to deliberate 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 suspension of CNG supply in Khyber Pakhtunkhwa.
The meeting was attended by Senator Qurat-ul-Ain Marri, Senator Saifullah Abro, Senator Saadia Abbasi, Senator Hidayatullah Khan, Senator Jam Saifullah Khan, Senator Amir Waliuddin Chishti, and Senator Manzoor Ahmed.
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 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. It was apprised that gas supply had been diverted to urea production units to avert a fertilizer crisis, particularly amid constraints in DAP imports.
The Committee was further informed about the import shares of crude oil, petrol, diesel, LNG, and LPG from various countries. The committee observed that the increase in petroleum prices last month, despite the availability of existing stocks, appeared to have financially benefited Oil Marketing Companies (OMCs). Minister for Petroleum, however, explained that the price adjustment was intended to provide fiscal space and liquidity to OMCs in order to avoid fuel shortages amid volatility in international petroleum markets.
The Committee was informed that an LNG cargo was expected to arrive at Karachi Port the following day. Committee urged authorities to conduct a comprehensive audit of OMCs to determine the extent of financial gains from existing stocks following the price hike. It was also informed that a joint stock-taking mechanism involving OGRA, FIA, IB, and other relevant agencies had been established to monitor stocks on a fortnightly basis. The Chairman Committee directed that all stock-taking reports be submitted before the Committee.
The Committee also questioned the petroleum pricing mechanism and chairman sought details regarding the formula used for determining fuel prices.
During the discussion on gas supply, officials informed the Committee that the government, through the National Crisis Management Cell (NCMC), had prioritized uninterrupted gas supply to domestic consumers, particularly during meal preparation hours. Members, however, expressed serious concern over prolonged gas outages in Balochistan and questioned the uneven supply situation.
The Committee took strong notice of the rising LPG prices and the significant gap between officially notified rates and actual market prices. The Chairman directed OGRA and relevant authorities to take strict action against overpricing and submit a detailed report to the Committee.
The issue of non-provision of gas connections to residents of gas-producing areas was also discussed. Members highlighted that despite Prime Ministerial directives and Supreme Court decisions, affected communities were still deprived of gas connections. Officials attributed the delay to the non-availability of funds. The committee resolved to take up the matter with relevant stakeholders.
The Committee also received a briefing on the selection process and criteria for appointments to the PMDC Board of Governors. In addition, the Committee took notice of varying charges imposed by PMDC on coal mining contractors at different sites in Balochistan. The Chairman questioned the rationale behind differential pricing and observed that PMDC and coal mining contractors were interdependent stakeholders. He announced that he would personally engage all stakeholders to resolve the issue amicably.
The Committee further discussed the suspension of CNG supply in Khyber Pakhtunkhwa. Members noted that the disruption was adversely affecting low-income segments of the province. Officials informed the Committee that restoration of CNG supply was linked to the availability of imported RLNG, which had been affected due to the ongoing conflict and closure of the Strait of Hormuz.
The Committee also questioned the allocation of natural gas to RLNG-based power plants in Punjab while similar facilities were not being extended to plants in other provinces, citing the example of the Jamshoro Power Plant. Members sought clarification regarding the allocation priority mechanism. The Chairman directed the Petroleum Division to submit the complete priority framework and recommended that natural gas supply to certain RLNG power plants be curtailed if equitable distribution could not be ensured.
Senator Manzoor Ahmed, as Convener of the Sub-Committee, also laid the Sub-Committee’s report before the Standing Committee.