Islamabad: The National Assembly Standing Committee on Petroleum on Tuesday recommended an immediate reduction in petroleum product prices and expressed displeasure over the failure to reduce LPG prices, directing OGRA to submit a detailed explanation.
The meeting, chaired by Mustafa Mahmood at Parliament House, was attended by Petroleum Minister Ali Pervaiz Malik and senior officials of the Ministry.
The Committee discussed petroleum levy, alleged misuse of Corporate Social Responsibility (CSR) funds, LPG pricing, refinery upgradation policy and other key issues relating to the petroleum sector.
During the meeting, members observed that the petroleum levy had increased substantially. Petroleum Minister Ali Pervaiz Malik clarified that the levy currently stood at around Rs80 per litre on petrol and Rs70 per litre on diesel. He said petroleum prices would decline significantly if the levy was withdrawn, but the government would have to arrange an alternative source of revenue.
Committee member Naveed Qamar criticized the alleged use of CSR funds on consultants, describing it as inappropriate and stressing that such funds should only be spent for their intended purposes.
The Petroleum Minister informed the Committee that Pakistan imports nearly 70 per cent of its petrol requirements and said refined petroleum products remained expensive despite fluctuations in international crude oil prices. He added that OGRA determines petroleum prices through a transparent pricing mechanism based on Platts benchmarks.
He said the government had successfully prevented fuel shortages despite higher insurance and freight costs during the recent regional crisis.
Ali Pervaiz Malik informed the Committee that the Refinery Upgradation Policy had been submitted to the Federal Cabinet and was expected to receive approval soon. He assured members that consumers would not bear the financial burden of refinery modernization and reiterated the government’s commitment to shifting Pakistan towards Euro-V standard fuels.
The Committee also held a detailed discussion on LPG pricing. Members criticized OGRA for failing to ensure implementation of officially notified LPG prices.
The Petroleum Minister said only 30 to 40 per cent of the country’s LPG demand was met through local production, while the remaining requirement was fulfilled through imports. He added that LPG auctions remained suspended due to a court stay order and that the matter had been taken up through the Attorney General.
The Committee decided to summon OGRA officials for a comprehensive briefing on LPG pricing and enforcement mechanisms at its next meeting.