Non-protected domestic categories: Rs100/mmbtu hike balanced with gas utilities’ profits

ISLAMABAD: The federal government has adjusted the proposed Rs100 per mmbtu gas increase for non-protected domestic categories with profitability of both companies - Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), Federal Minister for Petroleum Musadik Malik said on Monday.

In a press conference, Malik stated that the government had subsidised these consumers by utilising Rs100 billion in profits generated by the two gas companies. “Out of this Rs100 billion, Rs98 billion has been allocated to prevent a price increase for non-protected domestic gas consumers, while the remaining Rs2 billion will be used to reduce circular debt,” he explained.

He maintained that 64 percent poor fall in non-protected categories, despite increasing gas by 70 percent since first PDM government; present government did not increase the gas prices. “The gas price has been increased from Rs1,050 per mmbtu to Rs1,770 per mmbtu since first government of PDM,” he added.

Domestic consumers spared: Gas made costlier for captive power plants

He stated that it had no other choice but to raise tariffs of Captive Power Plants (CPPs) to comply with the IMF’s one of the conditions. The PTI government committed with the Fund to gradually raise the tariff of CPPs than closed down.

Responding to a question regarding protest of industry over CPPs, he said government had plan to impose levy but would consult with the industry first.

He said the caretaker government amended the gas law, mandating that the government incorporate diversions of RLNG (Re-gasified Liquefied Natural Gas) prices to domestic consumers into biannual price adjustments.

He said that a committee had been constituted to look into the prices of gas to fertiliser sector and a meeting of Council of Common Interests (CCI) would soon be convened to address the water dispute within provinces.

Copyright Business Recorder, 2025