Committee Expresses Satisfaction Over Fuel Supply Measures
The Senate Standing Committee on Petroleum convened a meeting at Pakistan State Oil (PSO) headquarters to evaluate the country's fuel supply situation and energy security. Committee members expressed satisfaction with the steps taken to maintain uninterrupted petroleum supplies despite regional challenges, according to officials present.
Strait of Hormuz Disruptions Addressed
PSO officials briefed the committee that disruptions caused by the closure of the Strait of Hormuz had impacted regional supply chains, leading to shortages of refined petroleum products, limited vessel availability, and increased freight and procurement costs. In response, PSO implemented alternative sourcing from regional and international markets, optimized supply operations, redistributed products based on demand, and ensured round-the-clock functioning at key installations.
Strategic Reserves and PSDP Proposals
The committee also reviewed plans to strengthen strategic fuel reserves and establish long-term supply arrangements to bolster energy security. Additionally, the Petroleum Division's Public Sector Development Programme (PSDP) proposals for 2026-27 were examined. It was reported that no new projects had been approved in 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 resulted in casualties and property damage. The committee was informed that PARCO Pearl Gas (Private) Limited had paid compensation to affected families on humanitarian grounds. However, members questioned the characterization of these payments, asserting that the company bore responsibility as the principal entity that had engaged the third-party contractor. They demanded assurances on preventive measures for similar incidents.
The PARCO managing director outlined corrective actions, including a vehicle tracking system, 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) emphasized that policy consistency is essential for sustaining foreign investment in the petroleum sector. He warned that frequent changes to the petroleum pricing mechanism could undermine investor confidence.
Committee Directives and National Priorities
The meeting concluded with the committee directing relevant organizations to submit follow-up reports. It underscored institutional accountability, good governance, and uninterrupted petroleum supplies as national priorities.
