Petroleum Minister Musadik Malik said on Wednesday that the federal government has deferred an agreement to buy liquefied natural gas (LNG) from Qatar for a year and will now receive the contracted LNG cargoes in 2026 instead of 2025.

“We currently have a surplus of LNG, so we are not importing any new cargo,” Malik said. There were no financial penalties for deferring, rather than cancelling, the order, he added.

Annual power use in the country, with a third of the electricity generated from natural gas, has fallen 8-10 per cent year-on-year over the past three quarters, Power Minister Awais Leghari told Reuters last month, primarily due to higher tariffs curbing household consumption.

Pakistan has deferred five LNG cargoes from Qatar and is negotiating to defer five more with other markets, Malik told journalists, without disclosing the names of the sellers.

Last month, the government said it was slashing electricity tariffs over the winter to boost consumption and cut the use of natural gas for heating.

Many power utilities have had to curtail or even halt operations in winter months due to demand dropping by up to 60pc from peak summer levels.

Malik told Reuters in June that Pakistan was unlikely to buy LNG cargoes on the spot market until at least the beginning of winter in November due to oversupply and high prices.

Pakistan, which last bought a spot LNG cargo in late 2023, cancelled its spot LNG tender for delivery in January owing to oversupply and a lack of buyers in the country at spot prices.

Malik also denied local media reports that the government was closing a deal to import one cargo of crude oil from Russia each month from January.

He said the government had restarted talks with Russia and was looking to solve obstacles such as “insurance, reinsurance, deal structure, shipping lines and ship cargo size”, but had not concluded a deal.

The previous caretaker government had decided not to pursue a government-to-government agreement with Russia, allowing the private sector to step in, Malik said.

Pakistan signed a deal with Russia in 2023 to import crude oil for local refining, which included a 100,000 metric tonne shipment to state-owned Pakistan Refinery Limited.

Under that arrangement, Pakistan paid for the crude at a discounted rate using Chinese yuan.

Against the market expectations, the federal government has increased the price of petrol by Rs1.35 per litre for the next fortnight, ending on November 15.

According to a notification issued by the Finance Division, the new price of petrol will be Rs248.38 per litre, up from Rs247.03 during the last fortnight.

“The Oil [and] Gas Regulatory Authority (OGRA) has worked out the consumer prices of petroleum products, based on the price variation in the international market,” read a statement released by the Finance Division late Thursday.

Similarly, the price of high-speed diesel (HSD) was increased from Rs251.29 to Rs255.14 per litre — an increase of Rs3.85 per litre.

Meanwhile, prices of other petroleum products have been reduced.

The new price of kerosene will be Rs161.54, down by Rs1.48 from Rs163.02 per litre.

Likewise, the price of light-diesel oil has been reduced by Rs2.61 from Rs150.12 to Rs147.51 per litre.

Petrol is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.

The federal government has slashed the price of petrol by Rs2.07 per litre for the next fortnight.

The new prices will be effective from October 1, according to an official notification issued on Monday.

As per the notification, the price of petrol has been decreased by Rs 2.7 per liter, bringing the new price to Rs 247.03 per liter.

High-speed diesel saw a reduction of Rs 3.40 per liter, while light diesel has been lowered by Rs 1.30 per liter. Kerosene oil prices have also been reduced by Rs 3.57 per liter.

This decision aims to ease inflationary pressure on consumers amidst rising fuel costs globally.

Earlier to this it was reported that the petroleum products prices in Pakistan are likely to decrease from October 1 amid a significant drop in the international market.

Petrol, also called mogas, is mainly used in private transportation, small vehicles, rickshaws, and two-wheelers. Higher fuel prices significantly impact the budgets of the members of the middle and lower-middle classes, who primarily consume petrol for commuting. On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.