Pakistan Mulls Uniform Gas Pricing to End Cross-Subsidies

The government of Pakistan is considering introducing a uniform average gas price for all consumers, replacing the existing slab-based pricing system. This move aims to eliminate cross-subsidies and budgetary subsidies, with the Oil and Gas Regulatory Authority (Ogra) recommending an average prescribed gas price of around Rs1,700 per million British thermal units (mmBtu).

Currently, gas is sold to consumers at different rates ranging from Rs500 to Rs4,300 per mmBtu as consumption rises. The regulator and the International Monetary Fund have asked the government to eliminate subsidies and recover the true cost of gas supply from all consumers.

Petroleum Minister Ali Pervaiz Malik met with the Sui Southern Gas Company’s (SSGC) board of directors and emphasized the need to transition to a single, fair gas price for all consumers. He directed the SSGC board to develop a comprehensive strategy and sustainable business model to transform the company into a financially viable organization.