The Senate Standing Committee on Cabinet Secretariat convened in Karachi on Tuesday to demand a justification for the recent Rs 55 per litre increase in petroleum prices. Chaired by Rana Mahmood ul Hassan, the committee accused the Oil and Gas Regulatory Authority (OGRA) of burdening the public based on “assumptions” rather than regional market realities.
First Result 🚨
One man killed another injured in #Sialkot_Paunjab_Pakistan when the petrol station staff refused to give extra 10 litres of petrol to the car driver.
Chaos started in Pakistan after the petroleum price hike! pic.twitter.com/O9HTYMGBgS
— Shahid Qazi (@QaziShahid786) March 6, 2026
Committee Challenges OGRA on Regional Parity
Senator Farooq H. Naek, participating virtually, pointed out that no other country in the region—including neighbors facing similar geopolitical tensions—had implemented a price hike as drastic as 20%. The committee expressed deep skepticism over the “pass-through” mechanism, suggesting that the public is being unfairly penalized.
OGRA’s Defense:
- Temporary Crisis: Chairman Shehzad Iqbal argued that the current high prices are a “temporary” result of the ongoing US-Israel-Iran war.
- Stabilization: He suggested that prices could stabilize once the conflict subsides and the Strait of Hormuz blockade is resolved.
- Role Clarification: Iqbal clarified that OGRA only provides pricing recommendations; the final decision rests with the federal government.
Fuel Reserves and Gas Price Warnings
In response to concerns about a potential shortage, the OGRA Chairman provided a crucial update on the country’s “buffer” stocks:
- Current Reserves: Pakistan has enough diesel and oil stocks to last until March 31, 2026, with government facilitation.
- Supply Chain: Ongoing discussions with stakeholders are aimed at ensuring a steady supply beyond March, despite the regional maritime blockade.
- Gas Prices: Senator Naek specifically grilled officials on whether a gas price hike is also imminent. While OGRA did not provide a definitive “yes,” their refusal to rule out an increase has fueled speculation of a looming utility price surge.
Scrutiny of Karachi’s Infrastructure Projects
The committee also shifted its focus to Karachi’s delayed mega-projects:
- K-IV Water Project: Now under the supervision of NESPAK, the project is awaiting further World Bank oversight before moving toward implementation.
- Red Line BRT: The committee expressed serious concern over the Rs 80 billion estimated cost and “planning gaps.”
- Warning: Senator Hassan warned that a formal inquiry may be launched if satisfactory explanations for the delays are not provided by the next meeting.
“The public should not be overburdened. We need a clear justification for why our prices are 20% higher when our neighbors have managed to keep theirs stable.” — Senator Farooq H. Naek.
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Summoning Ministry Officials
Displeased with the “operational” explanations from OGRA regarding Oil Marketing Companies (OMCs), the committee has directed that all relevant ministry authorities be summoned to the next meeting. The focus will be on the March 15 fuel price review and a detailed briefing on the Red Line BRT’s budget overruns.
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