ISLAMABAD: The government will not increase gas prices for any consumer for the next six months, despite the gas sector’s circular debt rising to nearly Rs3 trillion.
The assurance was given by Federal Minister for Petroleum Ali Pervaiz Malik while briefing the National Assembly Standing Committee on Petroleum, chaired by Syed Mustafa Mahmood.
The minister said Prime Minister Shehbaz Sharif has directed that gas prices remain unchanged for the rest of the current financial year to give relief to people and businesses during the winter season.
He also informed the committee that Pakistan has successfully reached an agreement with Qatar to divert surplus liquefied natural gas (LNG) cargoes to the international market.
He said this arrangement does not violate existing contracts. Malik added that Qatar is a trusted and strategic partner and both sides agreed on a workable solution to manage excess LNG.
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However, lawmakers expressed concern over the growing problems in the gas sector. MNA Asad Alam Niazi said the gas sector’s circular debt has crossed Rs3 trillion, which is even higher than the power sector’s debt, and includes heavy late payment charges.
Niazi asked whether the government plans to impose a Rs5 per litre levy on petrol and diesel to reduce the gas sector’s debt. The minister said this matter will be explained in detail in a separate briefing.
He added that a comprehensive report on gas circular debt, prepared under IMF conditions, has already been submitted to the cabinet’s energy committee.
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Malik said the government has stopped the creation of new circular debt in the gas sector and described it as a major reform achievement.
Gas companies also reported improvements in reducing losses and theft. Sui Northern Gas Pipelines Limited said it has reduced gas losses from 9 per cent to 5 per cent, while Sui Southern Gas Company (SSGC) cut losses from 17 per cent to 10 per cent. SSGC said Balochistan still faces annual gas losses of around Rs12 billion, but steps are being taken to resolve low gas pressure in Quetta.
The minister said domestic gas supply has improved this winter, with much higher daily supplies in November and December compared to last year. He added that no local gas field is currently shut down and extra gas is being supplied to power plants to prevent loadshedding.
