Pakistan’s economic managers delay gas tariff decision due to officials’ absence

The country’s economic managers have refused to approve the tariff for indigenous gas supplied to liquefied natural gas (LNG)-based power plants following the absence of top officials from the Petroleum Division at a recent meeting. The Economic Coordination Committee (ECC) deferred the proposal after learning that neither the petroleum secretary, who moved the summary, nor the special secretary petroleum were present. ECC members expressed dismay over the situation, directing that principal account officers who move summaries must attend meetings to pursue their respective cases. The tariff dispute arose after QatarEnergy declared force majeure on LNG cargo supplies following the eruption of a crisis in the Gulf and the subsequent US-Iran war in late February 2026. To manage extensive electricity load-shedding across the country during April and May 2026, the National Coordination and Management Council diverted 48 million cubic feet per day (mmcfd) of domestic gas away from compressed natural gas (CNG) filling stations in Khyber-Pakhtunkhwa (K-P) and directed it to LNG power plants. The Petroleum Division sought ECC approval for a high tariff on this locally produced gas to help Sui Northern Gas Pipelines Ltd (SNGPL) recover revenues and clear outstanding receivables against regular re-gasified LNG (RLNG) sales. Imposing the standard RLNG tariff, which Ogra set at 15.6237 dollars per mmBtu for May 2026, would prevent further circular debt in the gas sector, which stood at a principal amount of 1.8 trillion rupees as of December 2025. However, the Power Division has strongly opposed the high tariff. A previous meeting chaired by the prime minister suggested SNGPL charge a lower price of 2,000 rupees per mmBtu for the diverted indigenous gas. The Power Division argued that applying the full RLNG tariff would force power plants to increase fuel charges adjustments by 0.5 to 1 rupee per kilowatt-hour, leading to an immediate power tariff hike for consumers. The issue remains unresolved until the relevant ministry officials present the necessary views and comments to the committee.