The Senate Standing Committee on Petroleum convened at the Pakistan State Oil (PSO) headquarters on Tuesday to review the country's fuel supply situation, energy security, and key petroleum sector issues. Members expressed satisfaction with measures taken to ensure uninterrupted petroleum supplies amid regional challenges, particularly the Gulf conflict.
PSO Briefing on Operational Performance
The committee received a detailed briefing from PSO on its operational performance and fuel supply management in the wake of the Gulf conflict. Officials informed the meeting that disruptions caused by the closure of the Strait of Hormuz had affected regional supply chains, resulting in shortages of refined petroleum products, limited vessel availability, and increased freight and procurement costs.
PSO informed the committee that it had addressed these challenges through alternative sourcing from regional and international markets, optimization of supply operations, demand-based product redistribution, round-the-clock functioning at key installations, and close coordination with regulatory and law enforcement agencies.
Strategic Fuel Reserves and PSDP Proposals
The committee was also briefed on plans to strengthen strategic fuel reserves and long-term supply arrangements to enhance the country's energy security. Additionally, the committee reviewed the Petroleum Division's Public Sector Development Programme (PSDP) proposals for 2026-27. It was informed that no new projects had been approved during the current cycle, with allocations restricted to ongoing geological mapping activities.
LPG Tanker Explosion in Multan
Managing Director PARCO briefed the committee on the LPG tanker explosion at an illegal decanting facility in Multan on January 27, 2025, which caused casualties, injuries, and damage to private property. The committee was informed that PARCO Pearl Gas (Private) Limited had paid compensation to affected families on humanitarian grounds.
However, committee members questioned the description of the payments as humanitarian assistance, maintaining that the company bore responsibility as the principal entity that had engaged the third-party contractor involved in the incident. They also sought assurances regarding measures to prevent similar incidents in the future.
The PARCO managing director outlined a series of immediate, medium, and long-term corrective measures, including the introduction of a vehicle tracking system across the fleet, improved tamper-evident seals, enhanced driver monitoring, and strengthened route surveillance.
Policy Consistency for Foreign Investment
The Chairman of the Oil Companies Advisory Council (OCAC) told the committee that policy consistency was essential for sustaining foreign investment in the petroleum sector, warning that frequent changes to the petroleum pricing mechanism could undermine investor confidence.
Committee Directives and Attendees
The meeting concluded with the committee directing relevant organizations to submit follow-up reports while emphasizing institutional accountability, good governance, and uninterrupted petroleum supplies as national priorities. The meeting was attended by Senator Umer Farooq, Senator Qurat-ul-Ain Marri, Senator Abdul Wassy, Senator Rana Mehmood-ul-Hassan, Senator Mir Dostain Khan Domki, Senator Jam Saifullah Khan, Senator Amir Waliuddin Chishti, and Senator Manzoor Ahmed.
