• Minister confirms gas circular debt over Rs3 trillion, says no increase in tariff for six months
• Ali Pervaiz Malik deflects questions by NA panel about proposed use of petroleum levy for gas sector

ISLAMABAD: The government plans on increasing tax rates on petroleum products to contain more than Rs3 trillion circular debt in the gas sector instead of changing the gas tariff as determined by the Oil & Gas Regulatory Authority (Ogra).

While testifying before the National Assembly’s Standing Committee on Petroleum, Petr­o­leum Minister Ali Per­vaiz Malik on Tuesday said the government was not increasing the gas tariff from January 1 on the instructions of Prime Minister Shehbaz Sharif. The meeting was presided over by Syed Mustafa Mahmood, MNA.

The minister confirmed that the gas circular debt was over Rs3 trillion, including late payment surcharge. Mr Malik, however, deflected repeated questions from lawmakers about proposals for increasing the petroleum levy by Rs5 per litre on petrol and diesel to cover the circular debt, saying a separate briefing could be arranged on the subject.

Interestingly, there are only 10 million gas consumers in the country compared to

© Dawn Business