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Govt mulls replacing gas subsidy slabs with single price

Business Recorder • • 1 min read

Govt mulls replacing gas subsidy slabs with single price

Business Recorder reported that Federal Petroleum Minister Ali Pervaiz Malik said the government is weighing a move away from the current slab-based gas subsidy structure toward one uniform price for all consumers. Under the proposal, vulnerable segments would be shielded through focused welfare programmes instead. Malik argued that the change would encourage wider economic activity and slow the shift of customers to other fuels.

The remarks were made while Malik chaired a review meeting with the board and senior management of Sui Southern Gas Company, where the managing director reported an approximately 57% reduction in UFG in volumetric terms. The meeting was also told that K-Electric, industrial users and fertiliser plants face no gas load shedding, while households receive gas three times a day. Malik told the company's board to draft a plan centred on UFG control and financial viability, placing public service first.

The board welcomed the political committee set up under the Deputy Prime Minister to examine Balochistan's challenges and called it a positive step. Malik ordered that gas supply problems in the province be fixed first, alongside technical issues, infrastructure limits and gas theft. Work on wider gas sector reforms with the World Bank is also under way.

At a glance

  • Government is considering a single gas price for all consumers instead of slab-based subsidies.
  • SSGCL management reported UFG fell by approximately 57% in volumetric terms.
  • The meeting was informed of no gas load shedding for K-Electric, industrial users and fertiliser plants.

Stocks in this story

Sectors:Oil & Gas Marketing CompaniesPower Generation & Distribution

Originally reported by Business Recorder

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