The Senate Standing Committee on Petroleum was briefed on Monday about the prevailing petroleum pricing mechanism, including daily price calculations and the roles and responsibilities of the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) and oil marketing companies (OMCs).
The meeting was chaired by Senator Manzoor Ahmed.
OGRA’s Member Finance briefed the committee on the publication and updating of petroleum prices on the authority’s website.
He said petroleum prices had previously been revised monthly, but the process shifted to daily assessments during the Iran-Israel war.
He also updated the committee on the availability of petroleum stocks in the country and explained the mechanism for determining prices.
The committee chairman expressed concern over the extent of petroleum price reductions, questioning why prices were being reduced by only a few paisas despite the arrival of petroleum consignments and the availability of sufficient stocks.
The committee was informed that the government had introduced a fuel subsidy scheme under which 10 million people had been registered, while approximately nine million had benefited so far.
Around 9,700 fuel stations were facilitating consumers under the scheme, it was told.
The committee was also briefed on complaints submitted jointly by employees of Inter Gas System (Private) Limited (ISGS) regarding the termination of their regular employment.
The affected employees presented their grievances and said the company’s operational projects had not been discontinued despite the termination of their services.
The company’s human resources representative said the cost of maintaining its workforce had been rising gradually. Following four meetings of the board of directors, 15 employees, including two members of the executive staff, had been terminated.
One of the affected employees told the committee that they had been informed that the company’s operations would be closed within two to three months.
The employees said they had received two months’ salary as compensation and that their services were terminated when they arrived at their offices in the morning.
The chairman observed that the termination of permanent employees must follow the procedure prescribed by law, including proper notification to the employees concerned.
He expressed concern over the termination of regular employees at around 50 years of age, questioning their future employment prospects amid widespread unemployment.
The company’s human resources wing briefed the committee on the procedure followed for terminating employees. The chairman directed the company to submit its criteria for recruitment and termination, along with a complete list of affected employees, at the next meeting.
The committee condemned the termination of employees, particularly those at an advanced stage of their careers, without adequate consideration of their future employment prospects in the prevailing employment situation. It decided to take up the matter for a further briefing at its next meeting.
The committee deferred consideration of agenda items concerning the proposed relocation of Pakistan Petroleum Limited’s (PPL) headquarters from Karachi to Islamabad and a review of the ownership structure of Jamshoro Joint Venture Limited (JJVL).
It was also updated on the implementation of recommendations made during its meetings held on September 1 and 17, 2026.
The committee chairman informed members that residents of Qila Mubarik Town, Quetta, were facing difficulties in obtaining gas connections despite the availability of Rs5 million for the project. He said the contractor awarded the project had now demanded Rs11.5 million for the same work.
The committee was informed that the government’s ban on new gas connections had delayed the project by approximately three years. During this period, the project’s cost had increased due to rising commodity prices.
The committee observed that the delay was attributable to the concerned department, which had already issued a demand note to the residents. It further observed that issuing a fresh demand note under the circumstances was unlawful and held the department responsible for the difficulties faced by the residents.
During the discussion, it was proposed that the department lay the gas pipeline infrastructure without supplying gas while the ban remained in force. Gas could be supplied through the installed pipelines once restrictions on network extensions were lifted.
The committee deliberated on the matter and stressed the need for the concerned department to address the issue and resolve the difficulties faced by residents of Qila Mubarik Town, Quetta.