Govt plans more gas tariff slabs

According to The Express Tribune, the government is weighing additional gas tariff slabs that would extend cheaper gas to more consumers by widening the protected category. The Cabinet Committee on Energy asked the Petroleum Division to study a more systematic grading of protected users in the gas sector. The proposal emerged from a recent meeting chaired by Prime Minister Shehbaz Sharif.

A World Bank and KPMG review of the past five years found that gas-sector circular debt grew substantially between 2019 and 2023. The Petroleum Division linked much of that rise to unchanged consumer gas prices and RLNG diverted to domestic users. Lower bill collections by SSGC and SNGPL, along with power-sector problems, were also cited as keeping the debt on an upward path.

The division sought settlement of power-sector receivables, Rs42 billion in RLNG actualisation tariff dues, and Rs83 billion in GST refunds from the FBR. It also asked for Rs160 billion in budgetary allocation to remove cross-subsidies in the domestic sector. The CCOE directed that these issues be resolved after consulting all stakeholders, while the Finance Division said the gas circular debt plan would be taken up with the IMF during the September loan programme review.