The federal government has decided not to increase gas prices during the current year, providing relief to consumers of both state-run gas utilities, officials said on Tuesday.
The decision applies to customers of Sui Northern Gas Pipelines Limited and Sui Southern Gas Company and was taken on the directives of Prime Minister Shehbaz Sharif.
Minister for Petroleum Ali Pervaiz Malik said the move reflects the impact of reforms being carried out in the petroleum sector. He made the remarks while briefing the National Assembly Standing Committee on Petroleum during a meeting held at the Petroleum Division, chaired by Mustafa Mahmood.
The minister told the committee that the government has succeeded in stopping further growth of circular debt in the gas sector. He said the existing circular debt stands at around Rs3 trillion, including liabilities linked to liquefied natural gas.
Ali Pervaiz Malik said that following the prime minister’s instructions, gas tariffs would remain at current levels and no increase would be imposed on consumers. He added that the reforms have helped stabilise prices and prevent additional accumulation of circular debt.
Speaking to the media after the meeting, the petroleum minister said an agreement had been reached to divert surplus LNG cargoes procured from Qatar to the international market. He also said that no domestic gas field in the country is currently shut down.
During the committee meeting, members raised concerns over the use of Corporate Social Responsibility funds, with the chairman noting that the existing mechanism was not functioning in line with the intent of the law.
A sub-committee headed by Naveed Qamar has submitted recommendations stating that current CSR policies have failed to produce positive results and that funds are not being utilised effectively. The committee suggested that CSR resources should also be directed towards public welfare projects, including the provision of solar energy systems.
The managing director of Sui Northern Gas Pipelines Limited also briefed the committee on gas supply matters, with members expressing satisfaction over the briefing.