Senators question fuel pricing, slam unequal price hikes and cuts

The Senate Standing Committee on Petroleum has questioned the mechanism for daily determination of petroleum prices, 24NewsHD TV reported on Monday. 

The meeting, chaired by Senator Manzoor Hussain Kakar, discussed the pricing mechanism for petroleum products and the government’s fuel subsidy scheme.

 The lawmakers criticised the gap between fuel price increases and reductions and demanded transparency from government officials.

The Petroleum Division’s Special Secretary said it was the Oil and Gas Regulatory Authority’s (OGRA) responsibility to explain the price-setting mechanism.

An OGRA finance representative told the committee that the authority calculates prices using a rolling average of Arab Gulf product prices based on cargoes arriving over seven days.

The calculation also included marine losses and other costs, while customs duty was added to the price of imported oil.

Committee Chairman Kakar questioned the difference between increases and reductions in fuel prices, saying prices could rise by Rs5 a day, while reductions were sometimes limited to just 75 paisa.

The Petroleum Division official said oil supplies had remained unstable during the war, forcing Pakistan to obtain fuel from available sources across the region.

The official also informed the committee that the prime minister’s fuel subsidy scheme was launched on September 14.

Around 10 million people have registered so far, while Rs9 billion has been released under the scheme.

Expressing dissatisfaction with the briefing, Kakar said officials were treating the Senate committee too casually despite its status as an upper-house parliamentary body.

Senator Quratul Ain Marri criticised the officials for submitting only a brief written response, saying the Petroleum Committee was being treated in a way that forced its members to repeatedly assert their importance.

Kakar assured the members that he would personally look into the matter involving the officials and take whatever action he could.

Senator Sadia Abbasi criticised what she described as the excessive use of public resources and questioned the privileges enjoyed by officials while ordinary citizens struggled to meet household expenses.

Marri demanded details of the board’s membership and asked how much money had been saved by removing employees.

Abbasi urged the officials to convey the committee’s concerns to the relevant minister, saying the treatment of employees was unjust.

She also questioned the contrast between the hardships faced by ordinary people and the large convoys accompanying ministers.

The senators called for greater accountability, transparency in fuel pricing, and clear answers about decisions affecting public spending and the livelihoods of ordinary citizens.