Caretaker Energy Minister, Mohammad Ali, has stated that the installation of new gas connections is neither feasible nor planned. He mentioned that within the next one to two years, domestic gas connections will have to transition to Liquefied Petroleum Gas (LPG).
He further explained that gas will primarily be supplied to power plants in the future, aligning with the global practice of natural gas allocation. The minister also assured that the increased gas prices will not escalate the circular debt, and the gas sector will no longer incur losses.
According to the minister, international gas companies will continue operating in the country despite the circular debt, which is expected to boost gas production. Gas prices for the fertilizer sector have not been raised to avoid burdening farmers, while industrial gas prices will be competitive with those of regional countries, fostering an environment for industrial growth.
The minister disclosed that the previous circular debt amounted to 4,500 billion rupees. He also emphasized that the recent gas price adjustments have protected low-income households, with a 57 percent tariff increase for domestic consumers who use 31 percent of the gas supply. The tariff for the highest gas consumers has been aligned with LPG prices.
