The government is considering an increase in petroleum levies to manage the over Rs3 trillion circular debt in the gas sector instead of raising the gas tariff set by the Oil & Gas Regulatory Authority (OGRA).
As per the details, Petroleum Minister Ali Pervaiz Malik told the National Assembly’s Standing Committee on Petroleum that gas tariffs would not be increased from January 1 under instructions from Prime Minister (PM) Shehbaz Sharif.
Speaking during a meeting chaired by MNA Syed Mustafa Mahmood, the minister confirmed that the gas circular debt, including late payment surcharges, had crossed Rs3 trillion, however, he declined to comment on proposals to increase the petroleum levy by Rs5 per litre on petrol and diesel to cover the debt.
“A separate briefing could be arranged on the subject,” he said.
Currently, Pakistan has around 10 million gas consumers, while petrol and diesel are used by almost the entire population. The government has been increasing the petroleum levy, now up to Rs82 per litre, citing subsidies for power consumers, road construction in Balochistan and general revenue collection.
OGRA had recommended up to a 7 percent increase in natural gas prices, equal to Rs118 per unit, in late November 2025 to meet the Rs886 billion revenue requirement of gas companies for fiscal year 2025-26.
Under law, the government must decide on consumer-end gas prices within 40 days of OGRA’s determination.
Malik said gas prices would remain unchanged for six months. He added that reforms to reduce gas theft and losses, and the diversion of surplus Liquefied Natural Gas (LNG) cargoes to international markets, were underway.
He also confirmed that negotiations with Qatar had led to “a mutually acceptable arrangement” to manage excess supplies.