Gas Prices May Be Reduced as Government Reviews New Tariff Structure: Petroleum Minister

Islamabad (Kudrat News) — Federal Minister for Petroleum Ali Pervaiz Malik has said that the government may soon announce good news for gas consumers, as it is considering a reduction in gas prices or a revised pricing structure based on cheaper locally produced gas.

He stated that recent global conditions and regional tensions caused temporary disruptions in the supply of liquefied natural gas (LNG), after which the government increased the use of locally produced gas to ensure continuity in the power sector.

According to the petroleum minister, locally produced gas costs around Rs2,000 per million British thermal units (MMBtu), while imported LNG costs up to Rs3,500 per MMBtu, allowing the government to rely more on relatively cheaper domestic energy sources.

Ali Pervaiz Malik said that a summary regarding new gas pricing and policy adjustments will soon be presented to the federal cabinet for approval, after which a final decision will be taken and announced to the public.

He further revealed that to meet national gas demand during challenging circumstances, domestic production was increased, and an additional 400 million cubic feet of gas per day was added to the system, helping stabilize the energy supply.

The minister also noted that the government is working on multiple proposals to address the circular debt issue in the gas sector to further strengthen the financial stability of the energy system.