ISLAMABAD: Pakistan will soon announce ‘good news’ on gas prices as the government moves to align domestic gas tariffs with cheaper local supply used during a recent LNG disruption triggered by geopolitical tensions, Petroleum Minister Ali Pervaiz Malik said Wednesday. The announcement comes after liquefied natural gas (LNG) supplies were temporarily suspended during the US-Israel-Iran conflict, forcing the power sector to rely more heavily on domestic gas.
Malik said the shift to indigenous gas, priced at about Rs2,000 per million British thermal units compared with roughly Rs3,500 for imported LNG, helped shield consumers from higher costs. A summary will be presented to the federal cabinet to formalise pricing adjustments for locally produced gas, he added.
He said domestic production had been increased by around 400 million cubic feet per day to offset supply disruptions and stabilise the energy mix.
The government is also preparing proposals aimed at tackling chronic circular debt in the gas sector, a long-standing financial burden on energy companies.
