Govt Aims to Make Gas Bills More Affordable for Winter: Musadik Malik
ISLAMABAD: Federal Minister for Petroleum Dr. Musadik Malik announced on Wednesday that the government is developing a strategy to keep gas bills manageable for consumers during the winter months, when usage typically rises significantly.
Speaking to reporters, Malik explained that the government is considering implementing a seasonal tariff for both gas and electricity. Under this proposed system, electricity supply would increase in the winter, with a corresponding reduction in tariff rates, keeping bills affordable. Conversely, gas prices may rise slightly during the summer, when consumption is lower, but would decrease in winter to reflect higher usage. This approach aims to balance consumer costs with revenue requirements.
Malik also discussed efforts to provide system gas to RLNG (Regasified Liquefied Natural Gas) power plants to lower the overall basket price of electricity. Currently, RLNG plants generate electricity at a cost of Rs24-26 per unit, influenced by the value of the dollar. Due to these higher costs, these plants are not competitive with cheaper alternatives, leading to underutilization and increased pressure on the national gas transmission system.
The minister highlighted the seasonal challenge of capacity payments, noting that electricity consumption drops to 8,000-10,000MW in winter compared to 25,000-26,000MW during peak summer. To address this, the government is working on a winter package to make electricity more affordable and boost consumption to around 15,000-20,000MW, helping to mitigate capacity payment issues. Additionally, a committee led by Malik is exploring transitioning space and water heating from gas to electricity during winter.
Regarding the amended E&P (Exploration and Production) Policy 2012, which mandates that E&P companies sell 35% of their gas to the private sector, Malik stated that an implementation framework will be presented at the next Task Force meeting on gas issues, chaired by Deputy Prime Minister Senator Ishaq Dar. He also mentioned progress in seeking investment for the Reko Diq project, with share evaluations underway and a potential transaction expected in the coming months.
