Companies selling costly gas locally instead of using cheaper imported supplies
KARACHI:
Federal Energy Minister Ali Pervaiz Malik has alleged that power-generation companies are not using imported gas as per their agreements, resulting in expensive domestic gas being sold to consumers at subsidized rates. This misuse, he said, is adding to the country’s circular debt crisis.
“The power companies are not adhering to their contracts, which is increasing the financial burden on national gas importers,” Malik told reporters at the Sui Southern Gas Company (SSGC) headquarters on Friday.
The minister also warned about the growing problem of fuel smuggling, likening it to a “cancer,” and said that measures are being taken to address it. Petrol pumps are being registered and fitted with digital nozzles to prevent illegal fuel sales.
“Within the next two to three months, the Oil and Gas Regulatory Authority (Ogra) will go fully digital, allowing for complete monitoring of fuel supply and sales from refineries to petrol pumps,” Malik explained. He added that 85% of the moving fuel stock has already been digitally tracked.
Malik noted that no decision has yet been taken on raising the Petroleum Development Levy (PDL), and any increase in prices due to it has not yet been implemented.
He stressed the importance of a comprehensive, unified energy policy that treats all energy sources by the same standards.
The minister highlighted that the government’s efforts to reduce electricity prices and keep petrol and diesel rates steady are significant achievements. However, he acknowledged that providing relief in the electricity sector has placed a burden on the petroleum sector.
