The Ministry of Energy has decided to transfer the losses in the gas sector to the public.

From the coming week, the price of gas will increase by more than 50%. According to an agreement with the IMF, the gas price hike will be implemented from July 1.

The tariff of the Sui Northern Gas Pipelines Limited (SNGPL) will increase by Rs415 per MMBTU, while that of the Sui Southern Gas Company Limited (SSGC) will see an increase of Rs417 per MMBTU.

The Oil & Gas Regulatory Authority (OGRA) has already accorded approval to the price hike, and now the final decision has to be taken by the federal government.

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According to the IMF agreement, the increase in gas prices will be implemented from July 1.

Officials of the Ministry of Energy have claimed that the annual losses of the gas sector are around Rs350 billion, while the total circular debt has reached Rs2,700 billion.

Because of these pressing issues, the minister said, many exploration firms have left the country in the last 13 years. Pakistan now depends on the RLNG imports to meet the industry’s needs, especially during winter.

The officials said the difference in import tariffs for LNG and natural gas will also be eliminated.

On Friday, addressing a press conference flanked by caretaker ministers Shamshad Akhtar and Gohar Ijaz, Energy Minister Muhammad Ali said the country was losing Rs300 billion annually in the gas sector, and steps would have to be taken to find oil and gas.