NA panel seeks information on petrol margins

ISLAMABAD: National Assembly Standing Committee on Petroleum has directed Oil and Gas Regulatory Authority (OGRA) to verify and ensure that the prices posted on petrol stations match with those listed on company’s websites.

At a recent meeting, the Committee in view of discussions regarding fuel pricing and margins for Oil Marketing Companies (OMCs) and dealers recommended that the Pakistan Petroleum Dealers Association (PPDA) submit detailed information regarding petrol margins per litre.

The Committee instructed OGRA to provide facts and findings to both the Standing Committee and the Ministry, particularly concerning the pricing formula and inconsistencies in implementation.

The Committee expressed concern over petroleum price uniformity across diverse regions and reiterated the need for a review of the existing price determination criteria, terming them outdated. It urged the revision of this mechanism to reflect current realities, costs, and regional factors.

With regard to smuggling, the Committee made several critical recommendations. It called for intensified efforts to curb smuggling of petroleum products, particularly from Iran, and recommended the digitalization of trade systems to strengthen enforcement mechanisms. OGRA was tasked with presenting details of anti-smuggling efforts and digitalization initiatives in the next meeting.

The Committee further directed OGRA to regulate the inputs and outputs of petrol dealers and enforce monitoring of the refilling process, which was identified as insufficiently regulated. The Committee also asked for monthly, itemized data for the past five years on petroleum and oil smuggling incidents, seizures, petrol pump closures, arrests made, and punishments awarded.

Responding to discussions around smuggling through border areas, the Committee recommended that employment opportunities be provided to locals living near border areas as a deterrent to smuggling. It also directed the Ministries of Finance, Foreign Affairs, and Revenue to submit details of petroleum-related trade between Iran and countries like India and China, with a focus on safeguarding Pakistan’s interests.

The Committee decided that a dedicated meeting should be convened on the Border Points of Pakistan and Cross-Border Trade & Smuggling, to formulate concrete strategies in this regard.

On the issue of the JJVL-SSGCL agreement, the Committee recommended that a follow-up meeting be held to examine the agreement in depth and develop further recommendations.

Regarding the conversion of CNG filling stations into petrol pumps, the Committee agreed to defer further discussion to the next meeting for comprehensive deliberation under the petroleum policy framework. The issue of LPG pricing and regulation was also scheduled for further discussion in the next meeting.

In light of a fire incident linked to gas exploration in a Karachi housing society, the Committee directed the Ministry to investigate the cause and evaluate the need for preventive mechanisms. It recommended inter-agency coordination to clarify jurisdiction and enforce safety standards.

The Committee also recommended that the Chief Minister of Sindh should be consulted for further details/ information thereof.

With respect to the Geological Survey of Pakistan, the Committee directed the Ministry to provide a detailed brief on the proposal to merge it with the Survey of Pakistan. While the Ministry clarified that no such merger was currently under consideration, the Committee recommended a thorough examination of its feasibility.

On mines, minerals, and gemstones, the Committee decided that a dedicated meeting be convened to thoroughly address these matters. It recommended that province-wise data on value addition and volume of minerals and gemstones be collected and discussed at the federal level.

After detailed discussion, the Committee underscored the importance of local community inclusion in the development of the mineral sector and emphasised resolving legal and procedural issues, including pending court cases that have delayed sectoral progress. It was acknowledged that without resolving these issues, the true potential of Pakistan’s mineral wealth would remain untapped.