Federal Minister for Energy Ali Pervaiz Malik has stated that power-generating companies are not utilizing imported gas as per agreements and resultantly expensive gas is being sold to domestic consumers at subsidized rates, leading to a rise in circular debt.
"The power companies are violating their agreements, which is increasing the liabilities of the national gas importing companies," said Malik, while speaking to the media at the head office of the Sui Southern Gas Company (SSGC) on Friday.
The minister revealed that smuggled fuel is spreading like a "cancer," and to curb it, petrol pumps are being registered and digital nozzles installed.
"The Oil and Gas Regulatory Authority (Ogra) will become fully digital in two to three months, enabling complete monitoring of fuel supply and sales from refineries to petrol pumps," he said, adding that 85% of moving stock digital tracking has already been completed.
The energy minister said no final decision has been made yet to increase the Petroleum Development Levy (PDL), and its enforcement on prices has not taken place for now.
He emphasized the need for a coherent and unified energy policy, suggesting that all energy sources must be evaluated on equal standards.
Malik highlighted that the government's success in reducing electricity prices and maintaining current petrol and diesel prices is a significant achievement.
However, relief in the electricity sector has become a burden on the petroleum sector.
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