Govt to End Slab-Based Gas Subsidy

Notably, the administration is considering replacing the existing slab-based gas subsidy system with a single gas rate for all consumers, with vulnerable groups to be protected through targeted social protection programs, Federal Minister for Petroleum Ali Pervaiz Malik noted.

Key points

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• The session was informed that SSGCL has reduced unaccounted for gas by approximately 57 percent in volumetric terms.
• The minister additionally directed that gas supply matters in Balochistan be addressed on a priority basis, along with technical challenges, infrastructure constraints and gas theft.
• While the rise in gas circular debt has almost been ceased, the petroleum minister remarked gas costs have not been rose for the past year.

For context, the federal minister remarked the current system of gas subsidies through different pricing slabs needs to be revisited, arguing that a single fair rate could encourage economic activity and reduce the shift of consumers toward alternative fuels.

In practice, the minister created the remarks while chairing a gathering with the chairman and board of directors, managing director and senior management of Sui Southern Gas Firm Limited in Karachi to review the company's performance, operational challenges and future reforms.

Systems Limited Profit Rises 17% to Rs. 6.05 Billion in H1 2026.

Malik directed the SSGCL board to develop a comprehensive strategy and sustainable business model, with a particular focus on controlling unaccounted for gas to improve the company's financial viability while keeping public service as its priority.

Notably, the session was informed that SSGCL has reduced unaccounted for gas by approximately 57 percent in volumetric terms. While domestic consumers are receiving gas three times a day, it was additionally informed that there is at present no gas load shedding for K Electric, industrial consumers and fertilizer plants.

While the rise in gas circular debt has almost been ceased, the petroleum minister remarked gas costs have not been rose for the past year. He continued that the administration is working with the World Bank on comprehensive gas sector reforms to address structural problems and improve the efficiency and financial sustainability of the gas sector.

For context, the minister additionally directed that gas supply matters in Balochistan be addressed on a priority basis, along with technical challenges, infrastructure constraints and gas theft. He remarked sustainable solutions were needed to improve gas availability and service delivery in the province.

Malik stressed that public service should remain the top priority in SSGCL's operational, financial and strategic decisions as the administration pursues reforms aimed at ensuring the company's long term sustainability. Stay Connected with ProPakistani.

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Taken together, the developments around govt to End Slab point to a situation that is still moving, and the coming days should bring more clarity.