Karachi: The Senate Standing Committee on Cabinet Secretariat on Wednesday called for measures to provide relief to the public amid rising petroleum prices and directed relevant authorities to enhance the country’s fuel storage capacity to ensure adequate reserves and uninterrupted supplies during emergencies.
The committee met at the Sindh Secretariat Building under the chairmanship of Senator Rana Mahmoodul Hassan and reviewed regulatory, operational, financial and policy matters relating to the petroleum sector. Senators Amir Waliuddin Chishti, Atta-ur-Rehman, Sarmad Ali and Syed Waqar Mehdi attended the meeting, while Senators Saleem Mandviwalla, Muhammad Abdul Qadir, Dilawar Khan and Palwasha Muhammad Zai Khan participated through video link.
Officials from the Petroleum Division, Pakistan Refinery Limited (PARCO), Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL), Oil and Gas Regulatory Authority (OGRA), Oil and Gas Development Company Limited (OGDCL) and Pakistan State Oil (PSO) briefed the committee on various outstanding issues.
During discussions on the recent increase in petroleum prices and its impact on consumers, Senator Rana Mahmoodul Hassan called for greater relief and appropriate subsidy measures to reduce the burden of higher fuel costs. The committee also reviewed the recently announced fuel relief mechanism under which motorcycles and other eligible two- and three-wheelers can receive relief on up to 20 litres of petrol per month, while eligible cars with engine capacity of up to 800cc can receive relief on up to 30 litres.
The committee chairman stressed the importance of strengthening fuel storage capacity to maintain sufficient reserves and ensure uninterrupted supplies in the event of emergencies or disruptions. The relevant authorities were directed to examine measures for expanding storage facilities and improving emergency preparedness.
Senator Syed Waqar Mehdi sought details from the Petroleum Division about steps being taken to facilitate consumers and provide relief amid prevailing challenges, particularly the rise in fuel prices.
Senator Atta-ur-Rehman called for improved emergency preparedness and proposed that fuel allocations for government offices be reduced for one year to discourage unnecessary consumption. He also urged government departments to cut avoidable expenditure so that greater resources could be directed towards providing relief to the public.
Senator Amir Waliuddin Chishti emphasised the need to protect consumers from undue hardship and called for effective and timely regulatory measures to ensure the smooth supply and movement of fuel across the country.
The committee expressed displeasure over delays in releasing outstanding payments to oil marketing companies and completing the required formalities by OGRA. Members noted that OGRA had been directed on more than three occasions to resolve the issue, but it remained pending despite repeated assurances.
OGRA was directed to expedite the process and ensure early settlement of the outstanding payments. Its representatives assured the committee that the payments would be processed and released at the earliest.
The committee was informed that Pakistan was lagging behind in adopting modern refinery technology and that upgrading existing refineries would take four to five years and require an estimated investment of at least $6 billion.
Keeping in view the geographical conditions and supply requirements of Gilgit-Baltistan, the committee recommended that the Petroleum Division and PSO take necessary steps to establish a fuel storage facility in the region. PSO was directed to present details of the proposed facility at the next meeting, including its feasibility, storage capacity, proposed location, estimated cost and overall viability.
The chairman thanked the participants for their cooperation and assured officials that the committee would extend support and facilitate coordination with relevant authorities wherever required.