Musadik Malik assures no gas price hike in winter

ISLAMABAD: Federal Minister for Petroleum Musadik Malik has said that there will be no increase in gas prices in winter, and there will be no need to purchase spot LNG cargoes.

In an informal media conversation, Musadik Malik said that four or five government teams are working to reduce electricity prices.

He said that separate teams are working on electricity prices, generation companies (gencos), circular debt, and capacity payments. The minister expressed the hope that their efforts will provide some relief to the public.

Malik acknowledged that gas supply will be a significant challenge in winter and that low electricity consumption during the winter season also creates problems.

He called for the need to increase electricity consumption in winter and indicated that efforts were under way to achieve this.

Also read: Gas price increased by Rs250, LPG by Rs1.43

He said increasing gas prices and reducing electricity prices could boost electricity consumption in winter.

He also noted that switching heaters and stoves from gas to electricity could help avoid capacity payment charges.

The minister said that he meets with Saudi Arabian delegations every 10 days and that the commercial report for the green refinery is expected in December.

He highlighted that global demand for petrochemicals is rising, and the greenfield refinery will be divided equally between petrochemicals and petroleum.

Malik said that Reco Diq is progressing to the co-advance stage and that a positive news on Reco Diq was expected soon, despite being under a non-disclosure agreement.

He also said that the solar (panels) report will be submitted to the prime minister soon.

He dismissed reports of $18 billion penalty on Pakistan if it fails to start work on its part of Iran Pakistan (IP) gas pipeline stating no penalty estimate has been finalised yet.

Malik called for a political solution to Balochistan conundrum and Reko Diq issue should not be seen in isolation.