Islamabad:The National Assembly Standing Committee on Petroleum Division has called for greater transparency and public awareness regarding petrol and diesel prices, including taxes, levies, transportation costs and international benchmarks.

The committee, chaired by Syed Mustafa Mehmood, was briefed on the mechanism for determining petroleum and gas prices and the performance of Pakistan State Oil (PSO) and Oil and Gas Development Company Limited (OGDCL).

Officials said the international petroleum market was facing an unprecedented crisis involving crude oil, refined products, shipping, insurance and refining capacity. Rising shipping and insurance costs, longer transportation routes and high crack spreads had significantly increased the international cost of petroleum products.

The committee was informed that petrol and diesel prices are determined through a seven-day rolling average of international prices, along with the exchange rate and other prescribed components.

The committee also reviewed refinery upgradation, with the Petroleum Division stating that four out of five refineries had signed agreements for upgradation, while negotiations with the fifth were underway.

Members expressed concern over the production of high-sulphur petroleum products and their possible environmental impact during the upcoming smog and winter seasons.

The committee was also briefed on measures to curb petroleum smuggling, including stronger border controls and end-to-end digitization of the petroleum supply chain.

The committee sought updated figures on the liabilities and revenue shortfalls of SNGPL and SSGCL and decided to take up the Universal Gas Distribution Company (UGDC) and commercial sale of gas under the new policy as a special agenda item at its next meeting.

The committee also decided to examine the possibility of providing comparatively cheaper Light Diesel Oil (LDO) to farmers, while ensuring safeguards against misuse, diversion and revenue leakage.

Members were informed that Rs1 billion had been allocated during the current year for gas facilities within a five-kilometre radius of oil and gas wells, with 70 percent proposed for SSGC and 30 percent for SNGPL.