The Pakistan Parliamentary Committee on Pakistan on oil has raised concerns about an upcoming agreement between Suit Southern Gas Company (SSGC) and Jamshoro Joint Venture Limited (JJVL), which will convert gas into liquefied oil gas (GPL) for private sale to further reduce supply for national consumers.
The Standing Committee of the National Oil Assembly, chaired by Syed Mustafa Mahmud, was informed of the country’s oil and gas reserves.
Officials have revealed that Pakistan lacks gas storage facilities and that discussions are underway to develop a storage plan. However, the committee recommended establishing the project, questioning its necessity.
During the session, Shahid Khan, a member of the committee, asked if an investigation had been carried out to assess the nature reserves of Khyber Pakhtunkhwa, taking into account its abundant resources. The committee requested detailed conclusions at the next meeting.
The members of the Committee expressed reservations on the SSGC agreement with JJVL, under which the company will convert gas into LPG for the sale of private market. SSGC officials admitted that the agreement would have an impact on local gas availability.
“We conclude an agreement with JJVL, but this will affect the local gas supply,” said the representatives of the SSGC. The committee requested a detailed report on the agreement at the next session.
The absence of the Minister of State for Petroleum has aroused criticism from the members of the committee. “We understand that the secretary is outside the country, but the minister of oil should have been present,” they said.
The deregulation of oil prices has also been discussed. Committee members noted that fuel merchants have concerns and recommended their inclusion in future discussions.
Officials of the Ministry of Oil said that discussions were underway as to whether fuel prices should change daily or per week.
They admitted that deregulation could have a negative impact on certain areas. “Currently, the government maintains price uniformity by covering RS12 by liter on the margins, but no final decision has been made,” said officials.
The president of OGRA rejected the concerns concerning the strike of fuel merchants nationally, calling him a misunderstanding. “The concessionaires fear that oil companies will not offer them fair margins,” he said. The committee summoned the president of the OGRA and the fuel merchants for the next meeting to respond to deregulation problems.
