Malik calls for uniform gas pricing model
ISLAMABAD: Federal Petroleum Minister Ali Pervaiz Malik has called for replacing the current slab-based gas subsidy system with a uniform pricing model for all consumers. Speaking at a meeting of the Board Members of Sui Southern Gas Company Limited (SSGCL) held in Karachi on Thursday, the minister advocated relying on targeted social safety net programs to safeguard consumers’ interests. A…
Federal Petroleum Minister Ali Pervaiz Malik has proposed a uniform gas pricing model to replace the existing slab-based system. During a meeting of Sui Southern Gas Company Limited (SSGCL) Board Members in Karachi, Malik advocated for relying on targeted social safety net programs to protect consumers' interests. He emphasized that a single, fair gas price would boost economic growth and discourage consumers from turning to alternative energy sources.
Malik instructed SSGCL to develop a strategic plan and sustainable business model, with a special emphasis on UFG (Underground Fuel Gas) control to turn SSGCL into a financially viable organization with public service as its top priority. The meeting reviewed SSGCL's performance, achievements, challenges, and future reform priorities.
The company reported a 57% reduction in UFG volumetrically. Gas supply in K-Electric, industrial consumers, and fertiliser plants has been uninterrupted, while domestic consumers receive gas three times a day. Gas prices have remained unchanged for a year, with the gas circular debt nearly stabilized, marking significant progress in stabilizing the gas sector.
The Secretary of Petroleum emphasized that SSGCL's Board operates independently, following the State-Owned Enterprises (SOE) Act, and must take necessary measures for the organization's betterment, efficiency, and long-term sustainability. The government is collaborating with the World Bank on comprehensive gas sector reforms to tackle structural issues and create a more efficient, sustainable, and financially viable gas sector.
The SSGCL Board welcomed the creation of a Political Committee under the Deputy Prime Minister to address Balochistan's challenges, viewing it as a positive step toward resolving longstanding issues in the province. The Minister directed resolving gas supply issues in Balochistan as a priority, tackling technical challenges, infrastructure limitations, and gas theft, emphasizing sustainable solutions to improve gas availability and service delivery in the region.
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