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

According to Dawn, the government has signalled a move to one uniform average gas price for all consumers, in place of the current slab system with cross-subsidies and budgetary support. The average price set by Ogra, based on gas companies' revenue needs, currently stands near Rs1,700 per mmBtu, yet consumers pay between Rs500 and Rs4,300 depending on how much they use. The regulator and the IMF have urged the government to end subsidies and recover the full cost of supply from every user.

Petroleum Minister Ali Pervaiz Malik met the Sui Southern Gas Company board on Thursday and said the slab approach needs fresh review. He wants a single fair price for everyone, with vulnerable groups shielded through targeted social protection, and has directed the SSGC board to draw up a business strategy focused on unaccounted-for gas, which the company says has dropped by roughly 57 per cent in volumetric terms. Malik also noted that gas prices have not risen in the past year and that the government absorbed the impact of an Ogra-determined reduction in prescribed prices, which cut gas circular debt by around Rs55 billion.

The meeting heard that K-Electric, industrial users and fertiliser plants faced no gas loadshedding, while households received supply three times daily. The minister added that the government is working with the World Bank on wider sector reforms.