Islamabad: Federal Petroleum Minister Musadik Malik has assured that there will be no increase in gas prices for the upcoming winter season. Speaking informally with the media, Malik stated that there would be no need to purchase spot LNG cargos.
Malik further noted that the government has several teams working on providing relief in electricity prices. These teams are focusing on different aspects including electricity tariffs, JENCOs (generation companies), circular debt, and capacity payments. He expressed optimism that the package they are working on will offer some relief to the public.
Addressing concerns about gas supply during the winter, Malik acknowledged that it would pose a significant challenge. He highlighted that increasing electricity consumption during winter could help mitigate some of the issues related to capacity payments. He suggested that if heaters and stoves are switched from gas to electricity, it might help in managing the capacity payments better.
On another note, Malik revealed that he meets with Saudi Arabian delegations every ten days, and a commercial report for the green refinery project is expected in December. He added that global demand for petrochemicals is rising, and the new greenfield refinery will be divided equally between petrochemicals and petroleum products.
Regarding the Reko Diq project, Malik mentioned that it is progressing to an advanced stage, with non-disclosure agreements in place, and positive news is expected soon. He also stated that a report on solar energy will be presented to the Prime Minister shortly and clarified that the claim of an 18 billion rupee fine for the IP gas pipeline is incorrect. No such penalty has been estimated for Pakistan yet.
Malik emphasized that resolving issues in Balochistan requires a political solution and not just relying on the Reko Diq project. He also noted the presence of external interference in the region. Additionally, he mentioned that companies operating in the Frontier Region are provided with security as per established procedures.
Overall, Malik reaffirmed that gas prices will remain unchanged for the winter, and there will be no need for spot LNG cargoes.
No Increase in Gas Prices for Winter, Petroleum Minister Assures
