Govt reveals reason behind high gas prices for domestic consumers
Business
The govt explains reason
ISLAMABAD (Zeeshan Yousafzai) – The federal government has disclosed the reason behind the high cost of gas for domestic consumers in the country.
The expensive LNG purchased for the power sector is now being supplied to domestic consumers.
Minister for Petroleum Musadik Malik has warned of insufficient gas reserves.
He stated that LNG contracts were initially intended for the power sector. However, with power sector consumption decreasing, the unused LNG is being redirected to domestic consumers, raising their costs.
Sources indicate that around 50% of the cheaper domestic gas is allocated to factories and the power sector, while gas reserves are depleting at a rate of 1.7% per wellhead annually.
