Govt plans to shift gas burden to consumers without raising prices

Govt plans to shift gas burden to consumers without raising prices

Business

The government plans to control gas sector circular debt without raising gas prices by increasing the petroleum levy, a move that may still place an indirect burden on consumers.

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ISLAMABAD (Dunya News) – Despite keeping gas prices unchanged, the government is preparing to pass on the financial burden to consumers through other measures, sparking fresh concern among the public.

Federal Minister for Petroleum Ali Pervaiz Malik said the government is considering an increase of Rs4 per litre in the petroleum levy as part of a broader plan to control the growing circular debt in the gas sector. He explained that the aim is to fix the problem without directly raising gas tariffs.

The minister stated that the government wants to keep gas prices stable while bringing the gas circular debt under control, which currently stands at around Rs1.7 trillion. He added that a settlement plan is being worked out to address the long-standing issue, which has become a thorn in the side of the energy sector.

Sources in the Ministry of Petroleum revealed that the proposed Rs4 per litre increase in petroleum levy could generate around Rs450 billion in additional revenue. This money would be used to ease pressure on the gas sector and prevent the debt from snowballing further.

However, critics say that while gas prices may remain the same on paper, the added levy means consumers will still end up paying the price. Many believe the move is a case of robbing Peter to pay Paul, as the burden is shifted rather than removed.

The announcement comes at a time when inflation is already stretching household budgets, and any additional charges could add fuel to the fire.