Gas prices are about to take a hike since the gas sector has a circular debt of Rs181 billion.
Petroleum Division has identified the difference in prescribed gas prices and weighted average sale prices as the reason for the circular debt of Rs181 billion. The division has stated the problem to PM Imran Khan.
The government has decided to start an awareness campaign educating people about the latest increases in tariffs. The Petroleum Division has given briefings in the cabinet meeting hosted by Imran khan. These briefings were focused on gas sector prices and how the debt can be tackled by revising the gas sales prices and LNG pricing.
They highlighted that the revision was necessary since the sector needs to get back on its feet by new pricing. More so, the increase in the prices is unavoidable.
They also identified different problems regarding the payment. The amount paid was minor and the demand for gas has increased in such consumers.
Cabinet members also identified that residents living in Balochistan where Pakistan Petroleum Limited (PPL) is operating are getting sui gas without paying any bills.
The drained out gas reserves is going to increase the number of problems. The domestic product is decreasing by 7% every year.
A cabinet committee will be constituted to look into the matter and will present a report. This report will help the cabinet decide how the matter can be handled.