Pakistan’s Parliament Committee for Petroleum has raised concerns about an upcoming agreement between Sui Southern Gas Company (SSGC) and Jamshoro Joint Venture Limited (JJVL), which will convert gas to liquid petroleum gas (LPG) for private sales further reduce supply to domestic consumers.
The National Assembly’s Standing Committee for Petroleum, led by Syed Mustafa Mahmud, was informed of the country’s oil and gas reserves.
Officials revealed that Pakistan lacks gas storage facilities and discussions are underway to develop a warehouse plan. However, the committee recommended to pay tribute to the project and question its necessity.
During the session, committee member Shahid Khan asked if a study had been conducted to assess Khyber Pakhtunkhwa’s nature reserves considering its abundant resources. The committee requested detailed conclusions at the next meeting.
Committee members expressed reservations about SSGC’s agreement with JJVL, where the company will convert gas to LPG for sale of private market. SSGC officials admitted that the agreement would have an impact on local gas availability.
“We enter into an agreement with JJVL, but it will affect the local gas supply,” acknowledged SSGC representatives. The committee applied for a detailed report on the agreement in the next session.
The absence of the Prime Minister for Petroleum withdrew criticism from committee members. “We understand that the secretary is out of the country, but the petroleum minister should have been present,” they said.
The deregulation of oil prices was also discussed. Committee members noted that fuel retailers have concerns and recommended their admission to future discussions.
The Petroleum Ministry’s officials stated that discussions continued as to whether fuel prices should change daily or weekly.
They admitted that deregulation could have a negative impact on certain areas. “Currently, the government maintains the uniformity of the award by covering RS12 per liter of margins, but no final decision has been made,” officials explained.
OGRA chairman rejected concern about a nationwide fuel dealer’s strike and called it a misunderstanding. “Dealers fear that oil companies may not offer them fair margins,” he said. The committee called OGRA chairman and fuel dealers for the next meeting to address deregulation problems.
