Did Pakistan’s oil comapnies earn Rs72bn windfall during oil crisis?

ISLAMABAD – The concerns have emerged over alleged windfall profits of around Rs72 billion earned by oil marketing companies (OMCs) in Pakistan during recent fluctuations in global oil prices amid heightened Iran–US tensions. Ahead of the upcoming federal budget, Prime Minister Shehbaz Sharif has constituted a high-level committee to review key fiscal and energy-related issues, including the cross-subsidy mechanism and the possible recovery of alleged extraordinary profits made by OMCs during the period of global oil price volatility. The committee, headed by Finance Minister Muhammad Aurangzeb, has been tasked with examining broader budgetary priorities as well. These include expenditure rationalisation, austerity measures, prioritisation of development spending, energy sector reforms, and implementation of rightsizing measures across federal ministries and divisions. The officials said the panel will review the impact of global oil price fluctuations driven by geopolitical tensions in the Middle East and assess whether domestic pricing structures and downstream margins resulted in abnormal gains for oil marketing companies. The committee includes the ministers for economic affairs, planning, and law, along with a former bureaucrat serving as chief technical adviser and the additional secretary budget as a member. The sources said the review will determine whether any portion of the alleged windfall gains should be recovered or adjusted within the upcoming budget framework. However, the final decision will depend on the committee’s findings and policy recommendations. Oil prices climb as US attack in Iran dashes hopes for imminent deal