The Ministry of Petroleum has prepared a plan to increase gas prices by 55-60 percent in order to get rid of the revolving debt of the gas sector.
This plan will be implemented after the approval of the federal cabinet.
Under the plan, a national gas price will be set for the entire country, based on the weighted average cost of gas. This will mean that all consumers, regardless of where they live, will pay the same price for gas.
The current price of local gas is $8 per mmbtu, while the price of imported LNG is $13 per mmbtu. The plan aims to close the gap between these two prices, which is currently $5. This will help to reduce the revolving debt of the gas sector.
The plan also includes measures to reduce the amount of LNG that is used for fertilizer production. Currently, fertilizer producers are given a discounted rate for LNG. The plan would require them to pay the full market price for LNG.
The implementation of this plan will begin with the approval of the federal cabinet and consultation with the provinces.
The plan is expected to be implemented in the coming months. It is likely to have a significant impact on gas consumers, who will see their bills go up. However, the government believes that the plan is necessary to reduce the revolving debt of the gas sector and ensure the long-term sustainability of the industry.
