Senate committee reviews fuel supply, energy security

The Senate Standing Committee on Petroleum on Tuesday reviewed the country's fuel supply situation, energy security and key petroleum sector issues during a meeting held at the Pakistan State Oil (PSO) headquarters, with members expressing satisfaction over measures taken to ensure uninterrupted petroleum supplies amid regional challenges

KARACHI, (APP - UrduPoint / Pakistan Point News - 30th Jun, 2026) The Senate Standing Committee on Petroleum on Tuesday reviewed the country's fuel supply situation, energy security and key petroleum sector issues during a meeting held at the Pakistan State Oil (PSO) headquarters, with members expressing satisfaction over measures taken to ensure uninterrupted petroleum supplies amid regional challenges.

The committee received a detailed briefing from PSO on its operational performance and fuel supply management in the wake of the Gulf conflict. Officials informed the meeting that disruptions caused by the closure of the Strait of Hormuz had affected regional supply chains, resulting in shortages of refined petroleum products, limited vessel availability and increased freight and procurement costs.

PSO informed the committee that it had addressed the challenges through alternative sourcing from regional and international markets, optimisation of supply operations, demand-based product redistribution, round-the-clock functioning at key installations and close coordination with regulatory and law enforcement agencies. The committee was also briefed on plans to strengthen strategic fuel reserves and long-term supply arrangements to enhance the country's energy security.

The committee also reviewed the Petroleum Division's Public Sector Development Programme (PSDP) proposals for 2026-27. It was informed that no new projects had been approved during the current cycle, with allocations restricted to ongoing geological mapping activities.

Managing Director PARCO also briefed the committee on the LPG tanker explosion at an illegal decanting facility in Multan on January 27, 2025, which caused casualties, injuries and damage to private property.

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The committee was informed that PARCO Pearl Gas (Private) Limited had paid compensation to the affected families on humanitarian grounds. However, committee members questioned the description of the payments as humanitarian assistance, maintaining that the company bore responsibility as the principal entity that had engaged the third-party contractor involved in the incident. They also sought assurances regarding measures taken to prevent similar incidents in future.

The PARCO managing director outlined a series of immediate, medium and long-term corrective measures, including the introduction of a vehicle tracking system across the fleet, improved tamper-evident seals, enhanced driver monitoring and strengthened route surveillance.

Chairman of the Oil Companies Advisory Council (OCAC) told the committee that policy consistency was essential for sustaining foreign investment in the petroleum sector, warning that frequent changes to the petroleum pricing mechanism could undermine investor confidence.

The meeting concluded with the committee directing the relevant organisations to submit follow-up reports while emphasising institutional accountability, good governance and uninterrupted petroleum supplies as national priorities.

The meeting was attended by Senator Umer Farooq, Senator Qurat-ul-Ain Marri, Senator Abdul Wassy, Senator Rana Mehmood-ul-Hassan, Senator Mir Dostain Khan Domki, Senator Jam Saifullah Khan, Senator Amir Waliuddin Chishti and Senator Manzoor Ahmed.