The Senate Standing Committee on Petroleum also condemned the termination of 15 ISGS employees and raised concerns over rising costs and delays in providing gas connections to residents of Quetta.

ISLAMABAD: The Senate Standing Committee on Petroleum has questioned the limited reductions in petroleum prices despite the arrival of fuel consignments in Pakistan and the availability of sufficient stocks.

Chairing a committee meeting at Parliament House on October 12, 2026, Senator Manzoor Ahmed Kakar expressed concern over why petroleum prices were being reduced by only a few paisas despite the availability of adequate supplies.

The committee reviewed the existing petroleum pricing mechanism, including daily price calculations and the respective responsibilities of the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) and oil marketing companies (OMCs).

The Petroleum Division briefed members on the mechanism for maintaining and revising fuel prices. OGRA’s Member Finance explained how petroleum prices were published and updated on the authority’s website.

The committee was informed that petroleum prices had previously been revised monthly, but the process shifted to daily analysis during the Iran-Israel war. Officials also provided an update on the country’s petroleum stocks and explained the price determination mechanism.

Fuel subsidy scheme benefits millions

The committee was informed that the government had introduced a fuel subsidy scheme under which 10 million people had registered, while approximately nine million had benefited from the initiative.

Around 9,700 fuel stations were reportedly facilitating consumers under the scheme.

Senate committee condemns termination of 15 ISGS employees

The committee also examined complaints submitted by employees of Inter Gas System (Private) Limited (ISGS) over the termination of their regular employment.

The affected employees presented their grievances, arguing that the company’s operational projects had not been discontinued despite the termination of their services.

An ISGS human resources representative told the committee that the cost of maintaining staff had been increasing. Following four meetings of the company’s Board of Directors, 15 employees, including two executive staff members, had been dismissed.

One affected employee told the committee that employees had been informed that the company’s operations could close within two to three months. The employees said they had received two months’ salary as compensation and that their services were terminated when they arrived at their offices in the morning.

Senator Kakar observed that the termination of permanent employees must comply with the prescribed legal procedure, including proper notification to the individuals concerned.

He also expressed concern over the dismissal of employees at around 50 years of age, highlighting the difficulties they could face in finding alternative employment amid prevailing unemployment.

The committee condemned the terminations, particularly those affecting employees at an advanced stage of their careers, and called for greater consideration of their future employment prospects.

The chairman directed ISGS to submit its employee appointment and termination criteria, along with a complete list of affected employees, at the next meeting. The committee decided to seek a further briefing on the matter.

PPL headquarters and JJVL matters deferred

The committee deferred consideration of agenda items concerning the proposed 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).

Members were also briefed on the implementation status of recommendations made during the committee’s meetings held on September 1 and 17, 2026.

Quetta residents face delays in gas connections

The committee raised concerns over difficulties faced by residents of Qila Mubarik Town in Quetta in obtaining gas connections.

Senator Kakar informed the meeting that Rs5 million had been allocated for the project, but the contractor had subsequently demanded Rs11.5 million to carry out the same work.

Officials said the government’s ban on new gas connections had delayed the project for approximately three years. During this period, rising commodity prices had increased the estimated cost.

The committee observed that the concerned department had already issued a demand note to residents and attributed the resulting difficulties to delays on the department’s part. It questioned the legality of issuing a fresh demand note under these circumstances and held the department responsible for the problems faced by residents.

During the discussion, members proposed that the department could install the gas pipeline infrastructure without supplying gas while the ban remained in force. Gas could then be supplied through the installed network once restrictions on network extensions were lifted.

The committee stressed the need for the relevant department to address the issue and resolve the difficulties faced by residents of Qila Mubarik Town.

The meeting was attended by Senators Saadia Abbasi, Qurat-ul-Ain Marri, Jam Saifullah Khan, Abdul Wassy and Zameer Hussain Ghumro. Senator Amir Waliuddin Chishti participated through video link.