Senate Orders Audit Of OMC Fuel Stock Profits

The Senate Standing Committee on Petroleum on Monday instructed the relevant authorities to initiate a detailed audit of oil marketing companies (OMCs) in order to assess the financial benefits potentially derived from pre-existing fuel inventories following last month’s increase in petroleum prices.

During the committee session chaired by Senator Umer Farooq, members raised concerns regarding whether OMCs had secured additional profit margins by selling previously stocked petroleum products acquired at lower rates prior to the latest price revision.

Federal Minister for Petroleum Ali Pervaiz Malik defended the government’s decision, stating that the fuel price adjustment was aimed at creating fiscal space and improving liquidity conditions for oil marketing companies amid ongoing instability in global energy markets.

Committee members were informed that a coordinated stock-monitoring framework had been established involving the Oil and Gas Regulatory Authority, Federal Investigation Agency, Intelligence Bureau and other relevant institutions to conduct fortnightly reviews of petroleum inventories across the country.

The committee chairman further directed that all petroleum stock assessment reports be formally presented before the Senate panel for review and oversight purposes.

During the proceedings, officials also disclosed that Pakistan LNG Limited had rejected bids for two spot LNG cargoes after suppliers quoted comparatively higher prices.

Authorities stated that Pakistan was projected to achieve savings ranging between $22 million and $50 million through relatively cost-effective LNG procurement arrangements with Qatar.

Separately, according to Reuters and LSEG shipping data, a second Qatari LNG carrier, Mihzem, transporting approximately 174,000 cubic metres of LNG, was passing through the Strait of Hormuz en route to Port Qasim after departing from Ras Laffan, with arrival expected on May 12.

The committee additionally reviewed matters relating to LPG pricing mechanisms, suspension of compressed natural gas (CNG) supply in Khyber Pakhtunkhwa, gas allocation for producing regions, and coal mining charges.

Lawmakers expressed serious concern over increasing LPG prices and the widening disparity between official rates and prevailing market prices, directing Ogra to take enforcement action against overcharging practices and submit a compliance report.

Officials informed the committee that restoration of CNG supply in Khyber Pakhtunkhwa remained dependent on imported LNG availability, which continued to face uncertainty due to disruptions affecting maritime movement through the Strait of Hormuz.

The Senate panel also questioned disparities in gas allocation to RLNG-based power plants, particularly regarding supply preferences allegedly favouring Punjab-based facilities over plants located in other provinces, including Jamshoro Power Plant.

Members further discussed delays in providing gas connections to residents of gas-producing areas despite judicial rulings and directives issued by Prime Minister Shehbaz Sharif, while government officials attributed the delays primarily to financial and funding constraints.