Senate panel orders audit of oil marketing companies after fuel price hike

The Senate Standing Committee on Petroleum on Monday directed authorities to conduct a comprehensive audit of oil marketing companies to determine the extent of financial gains made from existing fuel stocks following last month’s petroleum price increase.

According to reports, the committee, chaired by Umer Farooq, questioned whether oil marketing companies had benefited from cheaper inventories already in storage before the latest fuel price adjustment.

Federal Minister for Petroleum Ali Pervaiz Malik defended the increase, saying the decision was intended to provide fiscal space and liquidity to oil marketing companies amid volatility in international energy markets.

Officials informed the committee that a joint stock-monitoring mechanism involving the Oil and Gas Regulatory Authority, the Federal Investigation Agency, the Intelligence Bureau and other agencies had been established to review petroleum stocks every two weeks.

The committee chairman directed that all stock-taking reports be submitted to the Senate panel.

During the meeting, lawmakers were informed that Pakistan LNG Limited had rejected bids for two spot LNG cargoes after suppliers quoted higher rates.

Officials said Pakistan was expected to save between $22 million and $50 million through comparatively lower-cost LNG arrangements from Qatar.

Separately, Reuters reported, citing LSEG shipping data, that a second Qatari LNG tanker, Mihzem, carrying 174,000 cubic metres of LNG, was transiting the Strait of Hormuz towards Port Qasim after departing Ras Laffan. The vessel is expected to arrive on May 12.

The committee also reviewed matters related to LPG pricing, suspension of compressed natural gas supply in Khyber Pakhtunkhwa, gas supply to producing areas and coal mining charges.

Lawmakers expressed concern over rising LPG prices and the gap between official and market rates, directing Ogra to take action against overcharging and submit a report.

Officials informed lawmakers that restoration of CNG supplies in Khyber Pakhtunkhwa depended on imported LNG availability, which remained affected by disruptions in the Strait of Hormuz.

The committee also questioned unequal gas allocation to RLNG-based power plants, particularly supplies to Punjab-based facilities compared with plants in other provinces, including Jamshoro Power Plant.

Members further discussed delays in providing gas connections to residents of gas-producing areas despite court rulings and directives from Prime Minister Shehbaz Sharif, while officials cited funding shortages as the main obstacle.