Govt Seeks IMF Nod for Single Gas Tariff, Rs. 162 Billion Subsidy
The Petroleum Division plans to seek the International Monetary Fund’s approval for a single gas tariff from July 1, 2027, … Read More The post Govt Seeks IMF Nod for Single Gas Tariff, Rs. 162 Billion Subsidy appeared first on ProPakistani .
The Petroleum Division intends to seek approval from the International Monetary Fund for a uniform gas tariff and a Rs. 162 billion subsidy, effective from July 1, 2027. This proposal seeks to replace the current cross-subsidy system with an income-based financial aid mechanism. The new tariff would set a single average price of approximately Rs.
1,708 per MMBtu, determined by household income. The government would allocate Rs. 162 billion for targeted assistance, ending the existing 12 slab tariff structure. The change aims to make gas subsidies more targeted and transparent, reducing distortions caused by the current model. However, households currently benefiting from protected rates might face higher gas prices, contingent on their eligibility for the new income-based subsidy.
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