Gas Prices in Pakistan May Drop Soon as Govt Considers Local Gas Relief Plan

The federal government is considering a possible reduction in gas prices in Pakistan as cheaper locally produced gas becomes more available in the energy system, according to Federal Minister for Petroleum Ali Pervaiz Malik.

He said a formal decision on revision of gas tariff in Pakistan is likely to be taken soon following a summary presentation to the federal cabinet.

Gas Price Reduction Under Review in Pakistan

The Petroleum Minister said the government is considering changing the price of gas, given the increasing proportion of low cost domestic gas production that could ease the burden on consumers.

He added that in the recent scenario of regional tensions and disruptions in global supply chains, especially LNG availability problems, Pakistan turned to local gas for energy sector stability.

LNG vs Domestic Gas Cost in Pakistan

According to official figures:

• Domestic gas cost in Pakistan: around Rs 2,000 per MMBTU
• Imported LNG price in Pakistan: up to Rs 3,500 per MMBTU

This huge disparity has created hope in consumers that they may soon get respite in gas bills in Pakistan if the cost-saving is being reflected in their bills.

Increase in Local Gas Production

The government also boosted domestic gas production by some 40 million m³ per day during LNG supply disruptions. This enabled the country to maintain energy stability and lessen reliance on costly imported fuel.

Gas Circular Debt Issue in Pakistan

The government is also tackling long-standing problems like the circular debt of gas sector in Pakistan. New policy ideas are being worked on to strengthen the energy industry’s financial position, officials said.

Possible Relief for Consumers

Energy experts feel that if local gas can be made available to end users at a price discount, this will provide savings to both the domestic gas consumers as well as to the industrial sector of Pakistan.

This can also alleviate the strain on the cash flow of gas companies and help the industry as a whole.

The final decision on Pakistan gas price reduction 2026 will be taken after a cabinet’s approval. It, if put in place, could bring a lot of relief to millions of gas consumers in the country.