Government raises gas tariffs by Rs 500

ISLAMABAD: Gas prices for captive power plants have been increased by Rs500 per MMBtu, bringing the new rate to 3,500 rupees per MMBtu, up from 3,000 rupees, ARY News reported.

The Oil and Gas Regulatory Authority (OGRA) has issued a notification for gas price changes for the current financial year.

However, gas prices for domestic consumers, roti tandoor consumers, commercial, CNG, and cement sectors will remain unchanged.

Gas prices for fertilizer and power sectors will also remain at their current rates. The price hike for captive power plants will take effect from February 1, 2025.

On January 1, 2025, the Pakistan government had decided to approach the upcoming US administration for the waiver of sanctions on the Pak-Iran gas pipeline project.

According to sources, Pakistan plans to seek an exemption from these sanctions to avoid potential economic repercussions.

The government is emphasizing that the gas pipeline project with Iran is a critical step toward securing affordable energy for the country, and it is therefore necessary to revisit the issue with the new US administration.

Sources with the Pakistani government indicated that the project is currently facing challenges due to the imposition of sanctions, making it essential for Pakistan to negotiate carefully.

Pakistan’s authorities are working on securing an exemption from these sanctions, which would allow the project to proceed without violating US restrictions, the sources said and added that although delays have not been caused by Pakistan, the project has been significantly affected by the sanctions imposed by the US.

Additionally, efforts are being made to convince Iran that a middle path could be found to move forward with the project while addressing the concerns of all parties involved.

The Pakistani government aims to ensure that the project proceeds without running into obstacles that could affect the country’s energy security and economic interests.