Urdu Report Desk
The Petroleum Ministry has started work on a uniform gas tariff system, with a proposal to replace the existing 12-slab tariff structure with a single gas tariff for all consumers from July 1, 2027.
Sources said approval for the uniform tariff policy will be sought from the International Monetary Fund (IMF), while the existing slab-based system in the gas sector would be abolished under the proposed policy.
Average Gas Tariff Proposed at Rs1,708 per MMBtu
The government is considering setting an average gas tariff of Rs1,708 per MMBtu for all consumers. Under the proposal, low-income and deserving households would receive subsidies based on their income rather than gas consumption.
The existing gas subsidy mechanism would be replaced with an income-based relief system. Household income would serve as the main criterion for determining eligibility for gas-related financial assistance.
Support Through Benazir Income Support Programme
According to sources, financial assistance to eligible consumers could be provided through the Benazir Income Support Programme.
Pakistan has committed to the IMF to eliminate cross-subsidies, and the proposed policy seeks to link gas subsidies to consumers’ income instead of their level of consumption.
Under the current system, low-consumption consumers receive gas at significantly lower rates. Protected consumers currently pay between Rs200 and Rs350 per MMBtu.
Rs162 Billion Proposed to End Cross-Subsidies
A proposal has been made to allocate Rs162 billion in the budget to eliminate cross-subsidies.
If implemented, the new policy is expected to significantly increase gas rates for household consumers. In contrast, gas prices for industrial and commercial consumers could see a substantial reduction.
