The government’s proposal to replace the existing slab-based gas subsidy system with a single gas price for all consumers could place an additional burden on Pakistan’s poor and middle-class households, particularly if targeted relief fails to reach those most in need. While the reform aims to improve efficiency, it risks making household gas bills less affordable.
Federal Minister for Petroleum Ali Pervaiz Malik said the government is considering a uniform gas price, with vulnerable consumers to be protected through targeted social protection programs.
He said the existing slab-based subsidy system needs to be revisited to encourage economic activity and discourage consumers from shifting to alternative fuels.
Speaking at a meeting with Sui Southern Gas Company Limited (SSGCL) officials in Karachi, Malik directed the company to develop a sustainable business model, with a particular focus on reducing Unaccounted-for-Gas (UFG) losses. SSGCL management said UFG had declined by around 57% in volumetric terms.
The meeting was also informed that there is no gas load shedding for K-Electric, industrial consumers and fertilizer plants, while domestic consumers receive gas three times a day.
Malik said gas prices had remained unchanged for a year and noted progress in containing the sector’s circular debt. The government is also working with the World Bank on broader gas-sector reforms.
