ISLAMABAD: A parliamentary panel on Monday raised concerns over the extent of petroleum price reductions, questioning why prices were being reduced by only a few paise despite the arrival of petroleum consignments in the country and the availability of sufficient stocks.
The matter was taken in the Senate Standing Committee on Petroleum which reviewed fuel pricing mechanism, ISGS Employees’ terminations and gas connection issues in Quetta. Senator Manzoor Ahmed chaired the meeting.
The Committee was briefed on the prevailing petroleum pricing mechanism, including the daily pricing process, price calculations, and the roles and responsibilities of the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) and Oil Marketing Companies (OMCs).
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The Petroleum Division informed the Committee about the mechanism for maintaining and revising petroleum prices. The Member Finance, OGRA, briefed the Committee on the publication and updating of petroleum prices on OGRA’s website.
He stated that prices had been revised on a monthly basis previously, but during the Iran-Israel war the oil prices analysed on daily basis and provided an update on the availability of petroleum stocks in the country. He also explained the mechanism for determining petroleum prices.
The Committee was further informed that the government had introduced a fuel subsidy scheme, under which 10 million people has been registered and approximately nine million has been benefited till date. It was also stated that around 9,700 fuel stations were facilitating consumers under the scheme.
The Committee was briefed on the joint grievances submitted by employees of Inter Gas System (Private) Limited (ISGS) regarding the termination of their regular services. The affected employees presented their grievances before the Committee and explained that, although the company’s operational projects had not been discontinued.
The HR representative of the company stated that the cost of maintaining human resources had been increasing gradually and, following four meetings of the Board of Directors, 15 employees had been terminated, including two members of the executive staff.
One of the affected employees informed the Committee that they had been told the company’s operations would be closed within two to three months. The employees further stated that they had been paid two months’ salary as compensation and that their services were terminated when they arrived at their offices in the morning.
The Chairman observed that, under the law, the termination of a permanent employee’s services must follow the prescribed procedure, including proper notification to the employee concerned. He expressed concern over the termination of regular employees at around 50 years of age, questioning their future prospects in an environment marked by unemployment.
The Human Resources wing of the company briefed the Committee on the procedure followed for the termination of employees. The Chairman directed the company to submit its criteria for the appointment and termination of employees, along with a complete list of the affected employees in the next meeting.
The panel 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 environment of unemployment. The Committee decided that the matter would be taken up for a further briefing at its next meeting.
The Senate body deferred consideration of the agenda items concerning the 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).
The Committee was also updated on the implementation status of recommendations made during its meetings held on September 1 and 17, 2026.
The committee chairman informed that the residents of Qila Mubarik Town, Quetta, were facing difficulties in obtaining gas connections despite the availability of funds amounting to Rs5 million for the purpose. He stated that 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 for approximately three years. During this period, the cost of the project had increased due to the escalation in commodity prices.
The panel observed that the delay was attributable to the concerned department, which had already issued a demand note to the residents. It further observed that the issuance of a fresh demand note under the circumstances was unlawful and held the department responsible for the resulting difficulties.
During the discussion, it was proposed that the department may laid the gas pipeline infrastructure without releasing gas into the network while the ban remained in force. Gas could then be supplied through the installed pipelines once restrictions on network extensions were lifted.
The Committee deliberated on the matter and highlighted the need for the concerned department to address the issue and resolve the difficulties faced by the residents of Qila Mubarik Town, Quetta.
Copyright Business Recorder, 2026