Islamabad: The Petroleum Secretary has announced that LNG will not be available in the country after April 14, which will result in the power sector’s gas requirements not being fully met in April.
The announcement came during a meeting of the Senate Standing Committee on Petroleum, chaired by Senator Manzoor Ahmed, which reviewed petroleum product prices and availability across the country.
During the briefing, the Petroleum Secretary stated that supply of petroleum products has been affected due to tensions in the Middle East. Pakistan imports nearly 70% of its petroleum products from the region, and under normal circumstances, oil shipments from Arab countries reach Pakistan within 4–5 days. However, currently, maritime transport has been disrupted.
According to the Petroleum Secretary, the price of High-Speed Diesel (HSD) has surged from $88 per barrel to $187 per barrel, while petrol prices have risen from $74 per barrel to $130 per barrel.
During the session, Senator Manzoor Ahmed noted that the price increases had benefited oil marketing companies. In response, the Petroleum Secretary clarified that the price hike was aimed at preventing hoarding and did not benefit the companies. He added that increasing prices helped maintain imports and ensured the availability of petroleum products nationwide.
Senator Hidayatullah asked about the prices of petroleum products before March 7 and the extent of the increase. Officials from OGRA (Oil & Gas Regulatory Authority) stated that diesel prices had increased by approximately 100% and petrol by 70%.
The Petroleum Secretary further reported that the country currently holds crude oil reserves for 11 days, diesel for 21 days, petrol for 27 days, LPG for 9 days, and JP-1 for 14 days.
He also mentioned that the government is working on a relief package for motorcycle and rickshaw users.
Officials informed the committee that after April 14, LNG will not be available in the country, which will affect the power sector’s gas supply. Gas requirements for the power sector will need to be met through alternative sources. Although LNG can be purchased from a company in Azerbaijan, spot prices may reach $24 per unit, whereas Qatar currently offers gas at $9 per unit.
