Govt not imposing GST on petroleum products: Musadik

Minister clarified that only the levy was being increased

ISLAMABAD:

Minister of State for Petroleum Musadik Malik on Friday maintained that the government was not imposing general sales tax (GST) on petroleum products, clarifying that only levy was being increased, and added that gas metres were being installed at mohallah level to control the theft of the commodity.

Addressing the media in the federal capital, the state minister noted that gas resources were depleting fast. He said Sui Northern was being supplied 680mmcfd gas, observing that domestic consumer demand in winters was 950mmcfd to 1,350mmcfd.

Provision of gas to domestic consumers is the first priority of the government, Malik stressed, adding that gas metres were being installed at mohallah level where staff would be deputed to maintain a record of the supply of the commodity.

He said gas would not be supplied to those areas where the metres are not installed.

Malik informed the media that gas losses in Sui Northern accounted to eight per cent due to theft and emphasised that the Sui companies would have to give a complete record of the gas supply.

“Gas metre will be installed on every town monitoring system in the next six months. Tandoors will be provided local gas. Beside, restaurants will be given LPG. Gas [supply] to affluent areas will be stopped and [they] will be given LPG.”

Malik said that the government had written letters to Russia and other countries for energy requirements and hoped that progress would be made on receiving replies from them.

He said Turkmenistan had the fourth largest resources of gas in the world, adding 1.4 billion mmcfd would be procured from the state.

He said the government had decided to move forward on the issue of TAPI gas pipeline project.

The state minister maintained that APTMA was informed about the shortage of gas, adding that the body was now preparing a plan with the Sui Northern for the supply of the commodity.

He said the government was importing LPG to bridge the supply and demand gap of gas, adding that the consumers were being provided LPG on official rates and that gas on cheaper rates will only be given to poor consumers.

He said the government was mulling over increasing the levy on petroleum products and was not imposing GST.