Govt hints at uniform gas pricing, says existing system needs to be 'revisited'

Islamabad - The Pakistani government has suggested a uniform gas price for all consumers, signaling a potential shift away from the current slab-based pricing system. This move is part of a broader effort to streamline the gas sector and eliminate subsidies. The average gas price currently stands at around Rs1,700 per million British thermal units (mmBtu), but it varies widely between Rs500 and Rs4,300 per mmBtu depending on consumption levels.

The government, alongside the Oil and Gas Regulatory Authority (Ogra) and the International Monetary Fund, has been advocating for the elimination of subsidies and the recovery of the true cost of gas supply from all consumers. This transition is expected to promote economic activity and reduce migration to alternative fuels. The Petroleum Minister, Ali Pervaiz Malik, emphasized the need to replace the existing pricing slabs with a single, fair gas price for all consumers, while vulnerable groups would be protected through targeted social protection programs.

The minister also directed the Sui Southern Gas Company (SSGC) board to develop a comprehensive strategy and sustainable business model, with a focus on controlling unaccounted-for gas (UFG) to make the company financially viable while prioritizing public service.