Senate Panel Questions Gas Priority for Private LPG Producer

A Senate petroleum committee has questioned the government over continued domestic gas supplies to Jamshoro Joint Venture Limited (JJVL) while the public-sector Jamshoro Power Plant faces gas shortages.

 

The Senate Standing Committee on Petroleum directed Sui Southern Gas Company (SSGC) to submit details of JJVL’s gas supply agreement, renewal, operational status, outstanding and recovered dues, gas allocations and production. The committee also asked why JJVL was being prioritised over the Jamshoro Power Plant and sought information on measures to prevent unauthorised gas usage.

 

Senator Saifullah Abro alleged that JJVL had received preferential treatment despite gas shortages elsewhere in the country, claiming that power plants had been shut down to support the company’s revival.

 

The committee also examined allegations that oil marketing companies benefited from customs concessions while avoiding around Rs23 billion in taxes. Lawmakers sought updates on a pending FIA investigation into claims that OMCs made excessive profits on existing petroleum stocks following the sharp increase in fuel prices in March.

 

Separately, the panel raised concerns over 22 months of unpaid salaries for ENAR Petrotec employees and delays in implementing the Cabinet’s decision to merge the company with OGDC. Officials acknowledged salary arrears, while employees told the committee they had remained unpaid for nearly two years.

 

The committee also questioned Pakistan’s petroleum pricing mechanism, with Abro arguing that domestic crude production is not adequately reflected in the formula. Officials said the country produces around 64,000 barrels of crude per day, imports about 9 million tonnes annually, and meets roughly 30% of petrol and 70% of diesel demand through local production.