Following the halt in imported LNG purchases by the power sector due to reduced electricity demand, the government has decided to supply gas to domestic consumers. According to documents from the Ministry of Petroleum, providing LNG to households will require Rs. 163 billion. To prevent an increase in circular debt, gas tariffs will be raised, and the tariff difference between imported LNG and local gas will be eliminated.
Sources indicate that the daily injection of imported LNG is increasing pipeline pressure. Previously, the power sector consumed 600 MMCFD of LNG. With the closure of captive power plants, 150 MMCFD of LNG will also become surplus, while the gas sector has been generating Rs. 400 billion in revenue from captive power. To curb the rise in circular debt, gas tariffs will be increased.
It has also been revealed that the tariff difference between imported LNG and local gas will be removed. Currently, local gas is priced at Rs. 1,550 per MMCFD, while imported LNG costs Rs. 3,500 per MMCFD. Eliminating this difference is expected to generate Rs. 200 billion in revenue for the government.
The tariff for fertilizer companies will also be raised. The new gas tariffs are set to be implemented from February 2025.
