ISLAMABAD: Caretaker Energy Minister Mohammad Ali has said that new gas connections neither feasible nor will be installed, News reported.
Talking to media in Islamabad, the energy minister stated that domestic gas connections will have to shift to Liquefied Petroleum Gas (LPG) within the next one to two years.
“The gas will only be supplied to power plants in the future. This aligns with the global trend of supplying natural gas primarily to power plants,” he emphasized.
The energy minister assured that the increase in gas prices will not lead to a rise in circular debt. “The gas sector will no longer bear losses,” he affirmed.
“International gas companies will not withdraw from the country due to the circular debt, and this step will contribute to enhanced gas production,” the minister added.
Regarding the fertilizer sector, the minister stated that gas prices have not been increased so as not to burden the farmers. He further mentioned that industrial gas prices will now be in line with those of regional countries, fostering a competitive environment for the promotion of industries in the country.
“The past circular debt amounted to 4,500 billion rupees,” he revealed.
The energy minister highlighted that the poor have been most protected during the gas price hike. “57 percent of domestic consumers’ tariffs have been raised,” he stated. In addition, the minister pointed out that 57 percent of domestic consumers only utilize 31 percent of the gas supply.
“The tariff for the highest gas consumers has been brought at par with that of LPG,” stated Mohammad Ali.
The Energy Minister of Pakistan announced that new gas connections will no longer be feasible or installed in the country. Instead, domestic gas connections will have to shift to Liquefied Petroleum Gas (LPG) within the next one to two years. Gas will only be supplied to power plants, and the gas price for the industry will be at par with regional countries. The circular debt in the gas sector has been a significant issue, but efforts have been made to protect the poor during gas price hikes. (48 words)
Leave a Comment