National Assembly Standing Committee on Energy Discusses Petroleum Sector Issues

ISLAMABAD: The National Assembly’s Standing Committee on Energy (Petroleum Division) convened its 8th session on Tuesday at Parliament House, Islamabad. Syed Mustafa Mehmood, MNA, presided over the meeting.

The committee started by affirming the minutes from its prior gathering on February 27th, 2025, and extended a welcome to the Federal Minister for Energy (Petroleum Division).

The Energy Ministry (Petroleum Division) provided an extensive update on the progress of implementing the committee’s prior directives.

During the briefing, committee members posed several questions, which were addressed by the minister and relevant officials.

A detailed presentation addressing the concerns of the Pakistan Petroleum Dealers Association (PPDA) was also delivered.

The committee further examined the matter of revising margins for Oil Marketing Companies (OMCs) and dealers, considering the ECC’s decision from September 6th, 2023, which was based on PSO’s operational expenses.

Representatives from the PPDA pointed out that the current government-set margins—Rs1.20 per litre for petrol and Rs2.55 per litre for diesel—fail to account for several operational costs.

The possibility of converting CNG stations into petrol stations was addressed, with the minister clarifying that each case would be individually assessed under the existing petroleum policy.

He also mentioned that there would be no immediate changes to the policy. The committee opted to postpone further discussion on this matter until its subsequent meeting.

The minister acknowledged issues related to GST and LPG margins when addressing concerns about fuel quality.

He affirmed that OGRA has the authority to monitor these issues and that they would be addressed in the upcoming budget. Responding to a query, the minister cited a survey conducted by Mari Petroleum Company Limited in 2003-04 in Balochistan and assured that OGRA would brief the committee at the next meeting.

The OGRA chairman stated that petroleum prices are adjusted every two weeks with ECC approval, with PSO handling 50% of petroleum product sales, and prices determined by market dynamics.

Committee members inquired about the consistent petroleum prices nationwide despite logistical and geographical variations. The minister guaranteed that any corrupt practices in price determination would be investigated. It was agreed that the PPDA’s issues, especially those under OGRA’s purview, would be discussed thoroughly in the next session. The Minister urged the PPDA to provide fact-supported recommendations to OGRA for evaluation and submission to the Cabinet.

A gas exploration-related fire in a Karachi housing society was also addressed. The minister announced that a ministry-level committee would investigate. He emphasized that restructuring the mineral sector could significantly boost national income, and a separate committee is being formed to tackle systemic issues.

Responding to a question, the minister stated that there are no current plans to merge the Survey of Pakistan with the Geological Survey of Pakistan, but the committee instructed the ministry to provide a detailed brief on the matter. Mines and minerals issues were also discussed extensively. The committee resolved to dedicate a meeting to examine these issues and develop recommendations. The committee also requested province-specific data on mineral and gemstone value addition and volume, emphasizing discussion with provincial governments at the federal level.

The committee requested a written account from the Sindh government regarding the Karachi fire. On smuggling, the committee advocated for system digitalization to improve control and requested details on smuggled items at border areas, along with data on Iranian oil exports to other countries, for the next meeting.

The session was attended by National Assembly members including Sardar Ghulam Abbas, Anwarul Haq Chaudhary, Mian Khan Bugti, Haji Jamal Shah Kakar, Syed Naveed Qamar, Asad Alam Niazi, Salahuddin Junejo, Muhammad Moin Aamer Pirzada, Gul Asghar Khan, Muhammad Nawaz Khan, Mujahid Ali, and Shahid Ahmad.

Relevant ministry officials and PPDA representatives were also in attendance.