Senate briefed on alternative sourcing amid turmoil

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

PSO officials briefed the committee 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 and round-the-clock functioning at key installationsThe 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 briefed the committee on the LPG tanker explosion at an illegal decanting facility in Multan on January 27, 2025, which caused casualties and damage to property. The committee was told that PARCO Pearl Gas (Private) Limited had paid compensation to affected families on humanitarian grounds. However, members questioned the description of the payments, maintaining that the company bore responsibility as the principal entity that had engaged the third-party contractor involved. They sought assurances on measures to prevent similar incidents.

The PARCO managing director outlined corrective measures, including a vehicle tracking system, improved tamper-evident seals, enhanced driver monitoring and strengthened route surveillance.

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