Proposal under study to make gas and power rates uniform

The government firmed up key principles on Thursday for hiking gas prices to the extent of full cost recovery so as to compel consumers to shift to electricity for space and water heating during winter. The exercise was undertaken to tackle the Rs577bn circular debt in the sector. This was the crux of a meeting on natural gas policy and pricing at the ministry of planning. It was decided to go for fresh LNG supply contracts on a long-term basis as Qatar Gas could demand an increase in LNG prices or simply walk away from its contract in 2026. The meeting was attended by all the who’s who of the energy sector, including former premier Shahid Khaqan Abbasi, who heads the Energy Task Force, Planning Minister Ahsan Iqbal and Power Minister Khurram Dastgir Khan. Representatives of different energy sector organisations like the Oil and Gas Regulatory Authority (Ogra), Pakistan LNG Limited (PLL), Interstate Gas System (ISGS), Oil and Gas Development Company, Central Power Purchasing Agency, Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGC).