ISLAMABAD, Addressing concerns over the recent gas tariff increase, Caretaker Minister for Power and Petroleum Muhammad Ali stated on Tuesday that the decision serves the nation’s greater good.

According to Ministry of Information and Broadcasting, speaking at a news conference alongside the Minister for Information and Broadcasting Murtaza Solangi, Ali assured that the tariff modification would not impact 57% of the gas consumers. He explained the structure, noting that 36% of middle-class users would be billed based on consumption, while a mere 7% of the wealthier segment would incur higher charges. The Minister also revealed the government’s subsidy contributions, amounting to 139 billion rupees for the domestic gas sector and an additional 45 billion rupees for the Urea and fertilizer sector. Furthermore, Ali clarified that Tandoors would see no tariff spike.

Highlighting reasons for the gas price rise, Ali emphasized the decade-long depletion of gas reserves, prompting the government to resort to importing cost-effective LNG. He presented financial metrics, disclosing a 403 billion rupee deficit between OGRA’s gas requirement costs and actual expenses. Without the tariff increase, the government would face a loss surpassing 400 billion rupees, intensifying the circular debt.

Concluding his response, the Minister voiced confidence in the decision’s ability to stabilize the gas sector’s circular debt, regulate commodity prices, and improve foreign reserves. Addressing distribution equity, Ali confirmed consistent gas pricing for both new and older industrial entities across the South and North regions.