ISLAMABAD, June 1: The Senate's Standing Committee on Petroleum and Natural Resources has expressed its concern over the steep increase in the fuel oil prices and decided to send its recommendations to the government to use all resources including scaling down taxes levied on petroleum products to keep their prices at a reasonable level.

Briefing newsmen after the meeting Senator Dilawar Abbas, chairman of the Senate's committee, said on Tuesday that the government had already taken measures disallowing raise in the oil prices twice in last two fortnightly revisions by the Oil Companies Advisory Committee (OCAC).

The committee he said would recommend to the government certain measures including lowering down some taxes levied on the commodity to bring stability to the petroleum prices in future as well.

The committee he said would also recommend to the government to take immediate steps for the purchase of gas from Qatar, Iran and Turkmenistan besides initiating gas development and expansion projects to avoid the imminent shortage of the commodity after year 2010.

The meeting was attended by Prof Khurshid Ahmed, Dr Ismail Buledi and Azam Swati of MMA, and Naseer Mengal, Mrs Zuberi and others. The committee was informed that the foreign investors were taking great interest in exploration of oil and gas reserves and an international company, Total, was drilling oil and gas finds in Sindh and Balochistan.

At present country's total daily petroleum production was 62,000 barrels of which 29,000 barrels being produced by OGDC. The government proposes increasing use of coal to replace gas at various places to minimize its scarcity.

The committee was informed that the petroleum prices were fixed by OCAC. The said the committee would be expanded in future by coopting journalists and other stakeholders in it.