Minister reveals Rs 1 trillion loss due to LNG mismanagement

ISLAMABAD: Federal Minister for Petroleum Ali Pervez Malik has revealed the shocking fact that Liquefied Natural Gas (LNG) purchased at expensive rates was sold at a loss, resulting in a Rs 1,000 billion deficit to the national exchequer, ARY News reported.

The Federal Minister stated that the government’s priority is to promote local fuel sources, adding that a case regarding the Iran-Pakistan gas pipeline is currently before an arbitration court.

Ali Pervez Malik disclosed the concerning detail that expensive gas has been sold at subsidized rates over the last four years.

He noted that these trade practices forced the nation to endure a staggering loss of Rs 1 trillion.

Furthermore, he pointed out that the power sector failed to purchase the volume of LNG originally promised.

Regarding supply issues, the Minister highlighted a discrepancy in demand from the Power Division. While the division reports a daily demand of 800 million cubic feet, it typically utilizes only 400 million cubic feet.

The Minister concluded that, under the direction of the Prime Minister, it has been decided not to increase gas prices for the next six months.

Earlier, on Tuesday, the federal government has decided not to increase gas prices further from January 1.

Federal Minister for Petroleum Ali Pervez Malik shared this update during a briefing to the National Assembly Standing Committee on Petroleum on Tuesday.

The Minister informed the committee that, following the Prime Minister’s directives, gas prices will not be raised from January 2026.

Malik stated that the gas circular debt is no longer rising, though it currently stands at Rs 3 trillion, a figure that includes Late Payment Surcharges (LPS). He also noted that Qatar has maintained its contract conditions despite the challenging global situation.

Regarding supply, the Minister mentioned a discrepancy in demand from the Power Division. While the division reports a daily demand of 800 million cubic feet, it typically only utilizes 400 million cubic feet.

He suggested that the Minister for the Power Division could provide further clarity on that specific situation, adding that the government is working toward bringing the circular debt to zero while maintaining current gas rates.