Pakistan’s fuel prices may rise amid Mideast tensions, Senate panel told

Petroleum prices are likely to increase in the coming days due to the prevailing situation in Iran, the Senate Standing Committee on Devolution was informed on Monday, with officials cautioning that prolonged instability could pose risks to regional fuel supplies.

While briefing the committee, the Secretary of the Petroleum Division said the evolving situation in Iran could impact petroleum markets and lead to higher domestic prices. He added that continued uncertainty may create supply challenges across the region.

Earlier, the government had stated that there was no immediate threat of fuel shortages despite rising regional tensions. A high-level committee formed by the prime minister has begun daily monitoring of petroleum stocks and international price movements to maintain supply continuity.

The committee, which met at the Finance Division under the chairmanship of Finance Minister Muhammad Aurangzeb, reviewed domestic stock levels, trends in forward and futures markets, and the stability of regional and global supply chains. It also assessed potential short- and medium-term foreign exchange implications arising from oil price volatility and examined measures to prevent supply disruptions.

 

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The meeting, chaired by Senator Zamir Hussain Ghumro, was attended by Senators Sardar Al-Haj Muhammad Umer Gorgaij and Poonjo Bheel, while Senator Jan Mohammad Buledi participated as a special invitee.

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Separately, during the discussion on the Thar Coal Project, concerns were raised regarding the provision of free electricity to residents of Islamkot. A committee member stated that an agreement had promised 300 free units to local residents, but bills were still being issued. Officials clarified that the government had approved 100 free units per month for 4,688 consumers in the area.

The Special Secretary of the Power Division briefed the committee on ownership of power sector assets, stating that infrastructure funded by the federal government remains under federal ownership, while assets developed by provincial governments belong to the respective provinces. He said provinces have the authority to sell electricity generated from their infrastructure at rates determined by them.

The committee chair observed that existing contracts with Independent Power Producers have imposed a burden on the country and called for greater operational autonomy for distribution companies to improve governance and reduce federal liabilities.

On administrative matters, the Special Secretary of the Establishment Division informed the panel that ministries maintain quota rosters and that unfilled provincial quotas are typically carried forward to the following year. Concerns were expressed over low representation of Balochistan in federal secretariat posts, and the committee directed that quotas for Balochistan and Sindh be filled on priority.

The Establishment Division was instructed to issue a letter to all ministries and autonomous bodies to ensure timely filling of provincial quotas and to share compliance details with the committee. The panel also directed verification of domiciles of all federal employees following concerns about appointments made on fake domiciles.

The committee expressed dissatisfaction over incomplete information provided during the meeting and sought province-wise details of employees and budget allocations for review in the next session.