Strong Assurance: Gas Tariffs to Remain Unchanged Throughout the Year
In a major relief announcement for millions of consumers, the federal government has decided not to increase gas prices in 2026, keeping tariffs unchanged from January through December.
The assurance was given during a briefing to the National Assembly Standing Committee on Petroleum, where officials confirmed that no upward revision in gas prices is planned for the current year.
Prime Minister’s Directive Behind Decision
Federal Minister for Petroleum Ali Pervaiz Malik told the committee that gas prices were frozen on the direct instructions of the prime minister, emphasizing the government’s commitment to easing the financial burden on households and industries.
According to the minister, the decision became possible because the gas sector’s circular debt is no longer increasing, a key concern that previously forced price hikes.
Gas Circular Debt Still High but Stabilized
While prices remain unchanged, the petroleum minister acknowledged that the gas circular debt currently stands at approximately Rs3,000 billion, including liabilities linked to imported LNG.
He further disclosed that around Rs1,700 billion of this amount consists of interest payments, underlining the structural challenges still facing the energy sector.
Despite this, authorities believe the situation is now stable enough to avoid passing additional costs onto consumers.
LNG Supply: Qatar Honours Contract Despite Global Volatility
Highlighting Pakistan’s LNG supply arrangements, the minister said Qatar fully honoured its LNG contract even during periods of extreme global price fluctuations.
He noted that when international LNG prices surged to nearly $30 per unit, Qatar continued to supply LNG to Pakistan under agreed contractual terms, helping the country avoid severe energy shocks.
Power Sector Demand Fluctuations Explained
Briefing lawmakers on gas demand trends, the minister said the power sector consumes around 800 MMCFD in the morning, which drops to 400 MMCFD by midday.
He added that in January, demand initially stood at 200 MMCFD, later rising sharply to 500 MMCFD, reflecting seasonal and operational variations.
Offshore Drilling Plans in Indus Basin
Looking ahead, the minister revealed that offshore drilling is planned in the Indus Basin in collaboration with Turkish Petroleum.
He stated that Pakistani companies participating in these projects will be required to contribute financing, signaling a push toward expanding domestic exploration and reducing reliance on imports.
Public Relief Amid Economic Pressures
The government’s decision to freeze gas prices in 2026 comes at a time of persistent inflationary pressure, offering rare financial relief to households and businesses already struggling with rising costs.
Officials say the move reflects a broader effort to balance fiscal discipline with public welfare.