ISLAMABAD – For years, Pakistan’s gas consumers have been divided into different pricing slabs, with lower rates offering relief to smaller users. Now, the government is considering a major shift, with one gas price for all formula, a move that could change how gas subsidies work.
Federal Petroleum Minister Ali Pervaiz Malik shared details of proposal to change the existing slab-based subsidy structure and the introduction of a single gas price for consumers. Under the new approach, instead of providing cheaper gas through different consumption slabs, financially vulnerable households could be supported through targeted social protection programmes.
Minister said the existing subsidy mechanism needed to be reconsidered, arguing that a uniform tariff could promote economic activity and reduce consumers’ reliance on alternative fuels. He made the remarks while chairing a meeting with the Sui Southern Gas Company Limited (SSGCL) board, management and senior officials in Karachi. The meeting reviewed the company’s performance, operational challenges and plans for structural reform.
Malik directed SSGCL board to develop comprehensive strategy and sustainable business model, particularly focusing on bringing down unaccounted-for gas to strengthen the company’s financial position.
Officials told the meeting that SSGCL had already reduced unaccounted-for gas by around 57 percent in volumetric terms. The briefing also revealed that K-Electric, industrial consumers and fertiliser plants were currently facing no gas load shedding, while domestic consumers were receiving supplies three times a day.
The petroleum minister said gas prices remained unchanged for the past year, while the accumulation of gas circular debt had been nearly halted. He added that the government was working with the World Bank on comprehensive reforms aimed at addressing structural weaknesses and improving the efficiency and financial sustainability of the gas sector.
He also pushed to prioritise Balochistan, saying supply problems needs to be fixed at the earliest. He also called for action on technical faults, infrastructure limitations and gas theft to improve availability and service delivery.
Malik stressed that despite the planned reforms, public service must remain SSGCL’s top priority, as the government seeks to put the gas utility on a more sustainable financial and operational footing.
