Chairman Senate Standing Committee on Petroleum, Senator Mohammad Abdul Qadir, expressed his reservations on the mounting circular debt, which currently stands at Rs. 1500 billion while chairing a meeting of the Senate Standing Committee on Petroleum.
Senator Mohammad Abdul Qadir inquired as to what is the criteria for fixing gas prices and their distribution.
He was of the view that Domestic consumers should be given the top priority in that regard. Domestic users should be charged at affordable rates and industrial units as per the sector concerned.
The compressed Natural Gas (CNG) sector should be allowed to import gas on its own to reduce the burden on the government. Gas distribution should be prioritized sector-wise, he added. He also said that direct subsidy to the fertilizer industry is not sustainable.
The Chairman stressed the need to find a permanent solution to the recurring problem of circular debt.
The Committee also deliberated on the problems faced by the Karachi Chamber of Commerce & Industry (KCCI) regarding gas supply.
President KCCI briefed the Committee about the grievances of industrialists, which includes the non-availability of gas for the industrial sector for the last four months.
Chairman Committee Qadir opined that the major cause behind the current economic deterioration is a gap between import and export value, and to bring down this trade deficit, we need to give incentives and boost our local Industries. He further requested the Minister of State for Petroleum Division, Senator Musadik Masood Malik, to pay attention to the concerns of Karachi Industrialists and come up with appropriate solutions.
The Committee also discussed the relevant rules, which allow the Oil Marketing Companies (OMCs) to mix High Octane Blending Component (HOBC97). Senator Musadik Masood Malik told the Committee that the ministry only regularizes those products, which are utilized by the masses on a large scale, like RON 92 and HOBC97, does not fall in this category. Senator Mohammad Abdul Qadir advised the ministry to at least check the authenticity of this new product.
While deliberating on the issue of the Explosive Department binding people to lease their properties to particular OMCs for business. The spokesperson of the Explosive Department told the Committee that there is no such binding on a person, and Explosive Department only grants licenses for petrol pumps to oil marketing companies. The Chairman stressed that the objective should be to create ease for businessmen, not hurdles.
The Committee considered the Public Petition on the issue of meter tampering and overbilling referred by Honourable Chairman Senate. Chairman Committee pronounced that the services of an independent third party should be hired, which will help the authority in the detection of theft through scientific means.
The meeting was attended by Senator Fida Muhammad, Senator Engr. Rukhsana Zuberi, Senator Afnan Ullah Khan, Senator Shamim Afridi, Senator Saifullah Abro, Senator Musadik Masood Malik, Secretary for Ministry of Petroleum, Chairman Oil and Gas Regulatory Authority (OGRA) Masroor Khan, Members of KCCI and other senior officers of the Ministry of Petroleum and Sui Southern Gas Company as well.
Source: Pro Pakistani