Federal Minister of Petroleum Ali Pervaiz Malik has said that the government may soon announce good news for gas consumers, under which rates will be reduced or new prices will be determined based on cheap local gas.
The Petroleum Minister said that due to global conditions and regional tensions, there were temporary difficulties in LNG supply, after which the use of local gas was increased in the power sector so that the system could continue to function without interruption.
He clarified that the cost of imported LNG is Rs 3,500 while the price of local gas is about Rs 2,000 per MMBTU, which gave the government the opportunity to use cheap gas. According to Ali Pervaiz Malik, a summary has been prepared regarding the new local gas prices and policy, which will be presented to the federal cabinet very soon for final approval.
The public will be informed of the final decision on the new gas prices after receiving approval from the cabinet.The Petroleum Minister said that in difficult circumstances, local production was increased to meet the country’s gas needs, and about 400 million cubic feet of additional gas was added to the system daily.
He added that the government is also seriously working on the issue of circular debt in the gas sector, and various proposals are under consideration to make the sector financially stable.
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