Petroleum Minister Ali Pervaiz Malik Announces Gas Prices to Remain Unchanged This Year
*Islamabad:* Federal Minister for Petroleum Ali Pervaiz Malik has announced that gas prices will not be increased during the current year, assuring relief to consumers amid economic challenges.
The announcement was made during a meeting of the National Assembly Standing Committee on Petroleum, chaired by Mustafa Mahmood, where the minister briefed members on key developments in the gas sector. He stated that while the flow of gas circular debt currently stands at zero, the overall circular debt has reached nearly Rs 3 trillion, out of which Rs 1.7 trillion is interest.
Ali Pervaiz Malik informed the committee that global LNG cargo prices had surged up to $30 per unit, but Qatar continued supplying LNG to Pakistan under an existing agreement. He said Pakistan values its relationship with Qatar for honoring its commitments during difficult times.
The minister explained that if circular debt had continued to rise, an increase in gas prices would have been unavoidable. However, due to improved management, gas tariffs will remain unchanged this year.
Highlighting fluctuations in gas demand from the power sector, he said demand reaches 800 MMCFD in the morning but drops to around 400 MMCFD by noon. In January, the power sector demanded 200 MMCFD, which has now increased to 500 MMCFD.
The committee was also informed that Turkish Petroleum will begin offshore drilling in the Indus Basin, with Pakistani companies participating through joint ventures and contributing investment.
Officials from Sui Southern Gas Company briefed the committee that gas demand in Balochistan doubles during winter, rising from 70 MMCFD in summer to 155 MMCFD in winter. They noted that the gas sector in Balochistan suffers annual losses of Rs 12 billion, partly due to declining production from the Jhal Magsi well and pressure issues caused by compressor pumps. However, gas losses at Sui Southern have been reduced by 60 percent, with efforts underway to bring them down to single digits.
Speaking to the media after the meeting, Ali Pervaiz Malik said that on the directive of Prime Minister Shehbaz Sharif, gas prices will remain unchanged for the next six months. He added that growth in circular debt has been halted and no new debt is being generated.
The minister further revealed that Pakistan has successfully finalized an agreement to divert additional LNG cargoes from Qatar to the international market. He said ongoing reforms will help maintain gas prices for all consumer categories and provide maximum relief to the public during winter.
He assured that gas supply to domestic consumers remains stable nationwide, no local gas field has been shut down, and power plants are currently consuming gas beyond their IGCEP-assessed demand.
