Govt diverts gas supplies to fertiliser plants amid fuel import disruptions

Pakistan has redirected gas supplies from households and businesses to fertiliser factories to avoid disruptions to food production as the ongoing US-Iran conflict continues to affect fuel imports and shipping routes, Petroleum Minister Ali Pervaiz Malik told lawmakers on Monday.

The minister informed the Senate Standing Committee on Petroleum that gas was being diverted to urea plants because Pakistan was unable to import sufficient quantities of DAP fertiliser due to shipping disruptions linked to the conflict.

He warned that shortages of urea could affect crop production, while the government was also managing limited supplies of crude oil, petrol, diesel, liquefied natural gas and LPG imported from multiple countries.

The committee, chaired by Umer Farooq, met at Parliament House to review the country’s fuel supply position, gas availability in producing areas, LPG pricing, coal mining charges and suspension of CNG supplies in Khyber Pakhtunkhwa.

During the meeting, Senator Saifullah Abro sought written details regarding fuel pricing and petroleum taxes after Petroleum Division officials disclosed that a ₨117-per-litre levy was a major factor behind recent increases in petrol prices.

Lawmakers questioned the latest fuel price adjustment, arguing that oil marketing companies may have earned significant gains from cheaper inventories already in storage before the increase.

The petroleum minister defended the price revision, saying oil marketing companies required liquidity to maintain fuel supplies amid volatility in global energy markets.

The committee directed authorities to conduct a complete audit of oil marketing companies to assess gains made from the fuel price increase.

Officials informed lawmakers that a monitoring mechanism comprising Oil and Gas Regulatory Authority, the Federal Investigation Agency, intelligence agencies and other institutions had been established to review fuel stock positions every two weeks.

Members of the committee also raised concerns over LPG prices, pointing to differences between official prices and retail market rates. The chairman directed Ogra to take action against overcharging and submit a report to the committee.

On the issue of compressed natural gas, officials said supplies in Khyber Pakhtunkhwa remained suspended because imported gas required for restoration was unavailable due to the conflict and disruptions in the Strait of Hormuz.

Lawmakers also questioned why communities in gas-producing areas were still without gas connections despite court rulings and directives issued by the prime minister. Officials attributed the delays to funding shortages.

Gas allocation to power plants also came under discussion as committee members questioned why RLNG-based power plants in Punjab were receiving natural gas supplies while similar plants in Sindh and other regions were not.

The committee chairman directed the Petroleum Division to provide its complete gas allocation framework and warned that supplies to Punjab-based plants could be reconsidered if distribution concerns were not addressed.