Pakistan weighs ‘one gas price for all’ to consumers in massive shift to subsidies
ISLAMABAD – For years, Pakistan’s gas consumers have been divided into different price slabs, with lower rates providing relief to smaller consumers. Now, the government is considering a major overhaul, with a single gas price for all formula, a move that could change the way gas subsidies work.
Federal Minister Petroleum Ali Pervez Malik gave details of the proposal to change the existing slab-based subsidy structure and introduce a single gas price for consumers. Under the new mechanism, instead of providing cheap gas through different consumption slabs, economically weaker households can be supported through targeted social protection programmes.
The minister said there was a need to rethink the current subsidy mechanism, arguing that a uniform tariff could boost economic activity and reduce consumers’ dependence on alternative fuels. He expressed these views while presiding over a meeting with the board, management and senior officials of Sui Southern Gas Company Limited (SSGCL) in Karachi. The meeting reviewed the company’s performance, operational challenges and structural reform plans.
Malik directed the SSGCL board to develop a comprehensive strategy and sustainable business model, particularly focusing on reducing unaccounted gas to stabilize the company’s financial position.
Officials told the meeting that SSGCL has already reduced unaccounted gas by about 57%. The briefing also revealed that K Electric, industrial consumers and fertilizer plants are currently not facing load shedding of gas while domestic consumers are getting supply three times a day.
The petroleum minister said that the gas prices have remained stable for the past one year while the recovery of gas revolving credit has almost stopped. He added that the government is working with the World Bank on comprehensive reforms aimed at addressing structural weaknesses and improving the efficiency and financial stability of the gas sector.
He emphasized on giving priority to Balochistan and said that supply issues need to be resolved as soon as possible. He also called for action on technical glitches, infrastructure limitations and gas theft to improve availability and service delivery.
Malik stressed that despite the planned reforms, public service should remain SSGCL’s top priority, as the government seeks to put the gas utility on a more sustainable financial and operational footing.
Due to the fuel crisis, new gas connections were banned in Pakistan.
The post Pakistan weighs ‘one gas price for all’ consumers in massive shift in subsidy appeared first on Daily Pakistan English News.
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