OMCs and dealers: Body reviews matter of revision in margins

Business Recorder

30-04-2025

ISLAMABAD: The 8th meeting of the Standing Committee on Energy (Petroleum Division) of the National Assembly was held on Tuesday in the Parliament House, Islamabad. The meeting was chaired by Syed Mustafa Mehmood, MNA.
At the outset, the committee confirmed the minutes of its previous meeting held on 27th February 2025 and welcomed the Federal Minister for Energy (Petroleum Division) for his presence.
The Ministry of Energy (Petroleum Division) presented a detailed report on the implementation status of the committee's previous recommendations.
During the briefing, several queries were raised by the members and were addressed by the minister along with the concerned officers.
A comprehensive presentation was also made on the concerns of the Pakistan Petroleum Dealers Association (PPDA).
The committee also reviewed the matter of revision in margins for Oil Marketing Companies (OMCs) and dealers, in light of the ECC's decision dated 6th September 2023, based on PSO's operating cost.
Representatives of the PPDA highlighted the current government-provided margins—Rs1.20 per litre on petrol and Rs2.55 per litre on diesel—stating that several operational costs are not accounted for in the current structure.
The issue regarding the conversion of CNG filling stations into petrol pumps was discussed, and the minister clarified that such cases would be examined individually under the existing petroleum policy.
However, he added that there would be no immediate revision in the policy. The committee decided to defer further deliberation on this matter to its next meeting.
Addressing concerns regarding fuel quality, the minister pointed out challenges related to GST and LPG margins.
He stated that OGRA is empowered to oversee these matters and that relevant issues would be addressed in the upcoming budget. In response to a question, the minister referred to a survey conducted by Mari Petroleum Company Limited in 2003-04 in parts of Balochistan and assured that OGRA would brief the committee in the next meeting.
The OGRA chairman informed that petroleum prices are set every 15 days with ECC's approval, with 50 per cent of petroleum products being sold by PSO, and prices based on market demand and supply.
Committee members questioned why petroleum prices remain the same across the country despite geographical and logistical differences. The minister assured that any corrupt practices in price determination would be investigated. It was decided that the PPDA's issues, particularly those falling under OGRA's jurisdiction, would be discussed in detail at the next meeting. The Minister advised the PPDA to submit fact-based recommendations to OGRA for further evaluation and onward submission to the Cabinet.
An incident involving a fire caused by gas exploration in a housing society in Karachi was also discussed. The minister stated that a committee would be formed at the ministry level to investigate the matter. He noted that the restructuring of the mineral sector could significantly contribute to national income, and a separate committee was being formed to address systemic issues in this area.
In response to a question, the minister clarified that there are no current plans to merge the Survey of Pakistan with the Geological Survey of Pakistan, but the committee directed the ministry to submit a detailed brief on the matter. Issues related to mines and minerals were also discussed at length. The committee resolved to convene a dedicated meeting to thoroughly examine these issues and develop recommendations. Additionally, the committee sought province-wise data on value addition and volume of minerals and gemstones, stressing that the matter should be discussed with provincial governments at the federal level.
The committee requested a written report from the Government of Sindh on the aforementioned Karachi fire incident. On the issue of smuggling, the committee recommended digitalisation of systems to improve control and requested details of smuggled items at border areas, along with information on Iranian oil exports to other countries, to be submitted at the next meeting.
The meeting was attended by members of the National Assembly including Sardar Ghulam Abbas, Anwarul Haq Chaudhary, Mian Khan Bugti, Haji Jamal Shah Kakar, Syed Naveed Qamar, Asad Alam Niazi, Salahuddin Junejo, Muhammad Moin Aamer Pirzada, Gul Asghar Khan, Muhammad Nawaz Khan, Mujahid Ali, and Shahid Ahmad.
The concerned officers of the ministry and position holders of PPDA were also present.
Copyright Business Recorder, 2025