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Business Recorder
23-05-2025
- Business
- Business Recorder
Petroleum (Amendment) Bill, 2025: NA body postpones discussion
ISLAMABAD: The National Assembly's Standing Committee on Petroleum Division of the National Assembly on Thursday recommended the Off the Grid (Captive Power Plants) Levy Bill, 2025 for passage in the National Assembly. However, it postponed further discussion on the Petroleum (Amendment) Bill, 2025 to allow more time for a comprehensive review and informed recommendations. The committee was held here under the chairmanship of Syed Mustafa Mehmood. At the outset, the committee confirmed the minutes of its previous meeting held on April 29, 2025, and extended a warm welcome to the federal minister for petroleum division, members of the committee, and officials from various ministries, divisions, and departments for their presence. The committee also offered Fatiha Khwani for the martyrs of the suicide attack in Khuzdar, Balochistan that occurred a day earlier. The chair congratulated the members and attendees in light of recent national developments, especially acknowledging the commendable efforts of Pakistan's Armed Forces in managing sensitive situations with India. He reiterated the committee's full support for the Armed Forces and expressed national pride in their professionalism and dedication to safeguarding the country's interests. The Federal Minister for Petroleum Division gave a detailed briefing on the 'Off the Grid (Captive Power Plants) Levy Bill, 2025,' highlighting its significance as part of Pakistan's commitments under the International Monetary Fund (IMF) Extended Fund Facility. He noted that while the phase-out of captive power generation had long been under consideration, its implementation had been delayed due to prolonged political and economic constraints. The minister emphasised that transitioning industries from captive power systems to the national grid is intended to optimise surplus electricity generation, improve efficiency in the power sector, and relieve financial pressures on the economy. The minister informed the committee that a comprehensive consultation process had been completed in drafting the bill and acknowledged the instrumental role played by the speaker of the National Assembly in facilitating this process. He assured the committee that the bill is aimed at serving public interest without disrupting industrial operations and that protections for the industrial sector have been incorporated. He also highlighted high electricity prices as a major concern and underscored the need to fulfill public demand through grid supply. The minister directed that the transition plan prepared by the Power Division be shared with the committee. The committee also stressed that the ongoing consultation process must focus on quality and inclusivity. The committee was informed that both the Power Division and Petroleum Division are coordinating closely under the prime minister's directions to ensure a smooth transition and to address the growing circular debt in the petroleum sector. A Circular Debt Management Unit has been established, and in-camera briefings will be held during the next meeting of the Committee to discuss sensitive aspects of the reform agenda. Committee Members raised a range of important issues including the performance and reliability of K-Electric in Sindh, challenges being faced by small and medium enterprises (SMEs), the future of captive power generation facilities, and the procedures for converting gas meters used for industrial processing. The meeting was attended by members of the National Assembly including Sardar Ghulam Abbas, Anwarul Haq Chaudhary, Malik Saiful Malook Khokhar, Mian Khan Bugti, Haji Jamal Shah Kakar, Syed Naveed Qamar, Asad Alam Niazi, Muhammad Moin Aamer Pirzada, and Gul Asghar Khan. Also present were Momin Agha, Secretary, Petroleum Division; Masroor Khan, Chairman OGRA; Jam Muhammad Aslam, Additional Draftsman/Joint Secretary, Ministry of Law and Justice; along with other senior officials. Copyright Business Recorder, 2025
Business Recorder
30-04-2025
- Business
- Business Recorder
OMCs and dealers: Body reviews matter of revision in margins
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
