Senate questions why petrol price cuts remain limited to few paisas

Islamabad: The Senate Standing Committee on Petroleum has questioned why reductions in petrol and diesel prices have been limited to a few paisas despite the arrival of petroleum consignments in the country and the reported availability of sufficient fuel stocks.

During a meeting chaired by Senator Manzoor Ahmed at Parliament House, the committee sought an explanation of the petroleum pricing mechanism and examined how fuel prices are calculated, reviewed and published. The chairman raised concerns over the extent of price cuts and the process through which changes in international oil prices are reflected in prices paid by consumers in Pakistan.

The committee was briefed by the Petroleum Division and the Oil and Gas Regulatory Authority about the pricing system and the responsibilities of the government, OGRA and oil marketing companies in determining and implementing petroleum prices.

OGRA’s Member Finance explained the procedure for publishing and updating petroleum prices on the authority’s website. He said prices had previously been revised on a monthly basis. During the Iran Israel war, however, international oil prices were analysed daily, and updates were also provided on the availability of petroleum stocks in Pakistan.

The briefing covered the mechanism used to calculate petroleum prices and the role of the relevant institutions in monitoring the market. The discussion focused on how international price movements, arriving fuel consignments and available stocks are considered when the government reviews domestic prices.

The committee chairman questioned why consumers were receiving reductions of only a few paisas despite the arrival of petroleum consignments and the availability of sufficient stocks. The committee sought greater clarity on the extent of price reductions, although the information provided in the briefing did not specify the exact amount by which prices should have fallen or establish that any pricing rule had been violated.

The meeting also reviewed the government’s fuel subsidy scheme, under which around 10 million people had been registered. Officials informed the committee that approximately nine million people had benefited from the scheme so far.

Around 9,700 petrol stations were facilitating consumers under the programme, according to the briefing. The figures indicated the wide reach of the scheme, although the information provided did not specify the total amount spent on subsidies, the amount received by each beneficiary or the full eligibility criteria.

The committee also received an update on the implementation of recommendations made during its meetings held on September 1 and September 17, 2026. The discussion covered the current petroleum pricing arrangements and the need to keep the public informed about changes in fuel prices and the availability of stocks.

The committee’s discussion brought the process of fuel price calculation and the extent of relief provided to consumers under scrutiny. The key concern raised by the chairman was why price reductions remained small when petroleum consignments were arriving and officials reported sufficient stocks in the country.