KARACHI: The government is considering a new pricing system for Gas consumers across Pakistan. The proposal could replace the current slab-based subsidy system.
Federal Minister for Petroleum Ali Pervaiz Malik shared the proposal during a meeting in Karachi. He said vulnerable consumers would receive support through targeted social protection programs.
The minister chaired a meeting with the Sui Southern Gas Company Limited (SSGCL) management. The session reviewed the company’s performance and operational challenges.
Officials also discussed future reforms for the company and the wider gas sector. Malik said the existing subsidy structure needs to be reconsidered.
He argued that a single fair price could support economic activity. It could also reduce consumers’ shift toward alternative fuels.
The proposed system would end different pricing slabs for various consumer groups. However, the government plans to protect vulnerable groups through targeted assistance.
Malik also directed the SSGCL board to prepare a comprehensive strategy. The plan should include a sustainable business model for the company.
A major focus will be controlling unaccounted for gas. Reducing losses could improve SSGCL’s financial position and overall efficiency.
Officials informed the meeting about progress in reducing gas losses. SSGCL has reportedly reduced unaccounted for gas by around 57 percent.
The reduction was measured in volumetric terms. The development could help strengthen the company’s financial viability.
The meeting also reviewed current gas supply conditions. Officials said there is currently no gas load shedding for several major sectors.
These include K-Electric, industrial consumers and fertilizer plants. Domestic consumers are currently receiving gas three times a day.
The petroleum minister also highlighted recent developments in gas pricing. He said gas prices have remained unchanged for the past year.
He added that the rise in gas circular debt has nearly stopped. The government is also working on broader reforms for the sector.
According to Malik, the government is working with the World Bank on these reforms. The initiative aims to address structural problems in the gas industry.
It also seeks to improve efficiency and strengthen the sector’s financial sustainability. The reforms could bring changes to the existing gas supply system.
Malik also directed authorities to address supply problems in Balochistan. He said the province should receive priority attention.
The minister identified several challenges affecting gas services in Balochistan. These include technical issues, infrastructure constraints and gas theft.
He called for sustainable solutions to improve supply and service delivery. The government wants to ensure better availability for consumers in the province.
Malik stressed that public service must remain SSGCL’s main priority. He said this should guide the company’s operational and financial decisions.
The proposed single-price model remains under consideration. Further decisions will depend on the government’s review of the existing subsidy system.
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The government is also expected to continue consultations on broader sector reforms. The objective is to improve service delivery while ensuring long-term financial stability.
