Pakistan Government Announces No Gas Price Increase for 2026, Maintains Current Tariffs
The Pakistani government, under Petroleum Minister Ali Pervaiz Malik, has announced that gas prices will remain unchanged through 2026, following Prime Minister's directives. This decision comes amid a reported gas circular debt of Rs3 trillion, with zero current flow of debt, while the power sector's gas demand fluctuates significantly throughout the day. Additionally, Turkish Petroleum plans to engage in offshore drilling in the Indus Basin, with local companies expected to invest.
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The government of Pakistan, led by Petroleum Minister Ali Pervaiz Malik, has announced that there will be no increase in gas prices from January 1, 2026, following the Prime Minister's instructions. The current gas circular debt is reported at Rs3 trillion, with Rs1.7 trillion attributed to interest.
Malik stated that the flow of circular debt is currently zero, allowing for the decision to maintain existing tariffs. The power sector demands around 800 MMCFD of gas in the morning, which decreases to 400 MMCFD by midday; recent increases in demand have raised requests from 200 MMCFD to 500 MMCFD.
Additionally, Turkish Petroleum plans to conduct offshore drilling in the Indus Basin, with local companies expected to participate financially. The minister emphasized the importance of Qatar's LNG supply under contract, even during significant price fluctuations in the international market.
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