NA Panel Questions Fuel Pricing Process, Seeks OGRA Review
News Desk
Islamabad: The National Assembly’s Standing Committee on Petroleum has raised serious concerns over nearly Rs1.96 billion lying unutilized under the Petroleum Training Fund (PTF), questioning provincial governments over their failure to spend the money on the welfare and skill development of communities living in oil and gas producing areas.
The concerns were raised during the committee’s 14th meeting held at Parliament House under the chairmanship of Syed Mustafa Mehmood, where members reviewed the implementation of previous recommendations and scrutinized the management of the Petroleum Training Fund.
Officials from the Petroleum Division informed the committee that provincial governments collectively hold Rs1.956 billion in unspent training funds contributed by Exploration and Production (E&P) companies under their mandatory obligations.
According to the briefing, the Sindh Energy Department has received Rs1.032 billion, while Punjab has received Rs334.39 million under the fund. However, no details of significant spending for the benefit of local communities were presented.
The committee was told that the Khyber Pakhtunkhwa Energy Department received Rs202.28 million but spent only Rs11.2 million, mainly on technical training courses for deserving students in Karak.
Read More: https://thepenpk.com/pm-field-marshal-join-new-council-to-oversee-population-policy/
Similarly, the Balochistan Energy Department received Rs530.76 million, but spent only Rs8.41 million, and that expenditure was used for the capacity building of government employees rather than for local communities. Officials acknowledged that no funds had been spent on the welfare of local inhabitants, despite petroleum extraction taking place in the province.
Expressing dissatisfaction over the low utilization of the fund, committee members questioned why billions of rupees collected for community development had remained unused for years. They stressed that the fund was created to improve the lives of residents in oil and gas producing districts and should not remain idle.
The committee directed the Petroleum Division to submit a comprehensive report detailing the status of the fund, its utilization, outstanding payments due from E&P companies, and the legal framework governing its use. It also sought district-wise details of allocations and expenditures, including spending on purposes unrelated to local community development.
Members further recommended holding a separate meeting dedicated exclusively to reviewing the Petroleum Training Fund and examining proposed policy guidelines governing its future management.
The committee also expressed concern over the persistent issue of Unaccounted for Gas (UFG) and decided to convene a separate meeting to examine the matter in detail.
During the meeting, Petroleum Minister Ali Pervaiz Malik briefed lawmakers on petroleum prices, Liquefied Petroleum Gas (LPG), and Re-gasified Liquefied Natural Gas (RLNG). Following the briefing, the committee sought a detailed review of the mechanism used to determine petroleum product prices.
Lawmakers questioned whether recent fuel price revisions had complied with legal requirements, including mandatory public hearings by the Oil and Gas Regulatory Authority (OGRA). The committee directed the Petroleum Division to submit a detailed report and recommended that OGRA review the implementation of its own decisions on petroleum pricing in its next meeting.
The committee’s observations reflect growing parliamentary scrutiny over the management of public funds in the energy sector, particularly concerns that financial resources intended for communities affected by petroleum exploration have remained largely unutilized while questions persist over transparency in fuel pricing.
