The federal government is considering replacing the current slab based gas pricing system with a single tariff for all consumers, while extending direct support to low income households through targeted social protection programmes.
The proposal was discussed during a meeting chaired by Federal Minister for Petroleum Ali Pervaiz Malik at the headquarters of Sui Southern Gas Company Limited (SSGCL) in Karachi. The session reviewed the utility’s performance, operational challenges and plans for reform.
The minister said the existing subsidy model, which offers different gas prices under consumption slabs, should be reconsidered. He said a uniform gas price, backed by targeted assistance for vulnerable families, would create a fairer system, encourage economic activity and discourage consumers from switching to alternative fuels.
Malik also instructed the SSGCL board to prepare a long term business strategy focused on reducing unaccounted for gas (UFG) and improving the company’s financial health, while keeping public service at the centre of its operations.
During the briefing, SSGCL’s management informed the minister that the company had made significant progress in improving its distribution network. It said UFG had been reduced by around 57 per cent in volumetric terms through operational improvements.
Officials also told the meeting that there is currently no gas load shedding for K-Electric, industrial consumers or fertiliser plants. Domestic consumers, they said, are receiving gas supply three times a day.
The petroleum minister noted that gas prices have remained unchanged over the past year and said the growth in circular debt in the gas sector has been brought close to a halt. He described this as an important step towards improving the sector’s financial stability.
Malik said the government is working with the World Bank on a broad reform agenda to tackle structural issues and build a more efficient and financially sustainable gas sector.
The meeting also discussed gas supply issues in Balochistan. The SSGCL board welcomed the formation of a political committee under the Deputy Prime Minister to address the province’s longstanding challenges.
The minister directed the company to prioritise improvements in gas supply across Balochistan by addressing infrastructure gaps, technical problems and gas theft. He said every reform effort should ultimately strengthen public service while ensuring the long term sustainability of the company.
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