Govt mulls replacing gas subsidy slabs with single price

Govt mulls replacing gas subsidy slabs with single cost.

Key points

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• According to The minister, the existing system of gas subsidies via pricing slabs needs to be revisited.
• SSGCL's Managing Director briefed the minister on the company's milestones, achievements and challenges.

No gas load shedding for K-Electric, industrial consumers and fertiliser plants, session informed. Published August 27, 2026 Updated August 27, 2026 10: 44am. By BR Web Desk. Add BRecorder as a trusted source on Google.

For context, the administration is considering replacing the existing slab-based gas subsidy system with a single gas rate for all consumers, with targeted social protection measures, Federal Minister for Petroleum Ali Pervaiz Malik noted.

Notably, the minister offered these remarks while chairing a gathering with the Chairman and Board of Directors, Managing Director and senior management of Sui Southern Gas Firm Limited (SSGCL) Karachi to review the company's performance, key achievements, operational challenges and future reform priorities.

According to The minister, the existing system of gas subsidies via pricing slabs needs to be revisited. While vulnerable segments are to be protected through targeted social protection programmes, he emphasised the need to transition to a single fair gas cost for all consumers. This transition would spur greater economic activity while quelling migration of customers to alternative fuels.

During the session, Malik directed the Board of SSGCL to develop a comprehensive strategy and sustainable business model with special focus on UFG control to transform SSGCL into a financially viable organisation, with public service as the foremost priority.

SSGCL's Managing Director briefed the minister on the company's milestones, achievements and challenges. The management highlighted a significant improvement in the company's gas distribution system, with UFG reduced by approximately 57% in volumetric terms.

While domestic consumers are being provided gas three times a day, the session was informed that there is no gas load shedding for K-Electric, industrial consumers and fertiliser plants.

While the growth in gas circular debt has almost been halted, marking notable progress towards stabilisation of the gas sector, ali Pervaiz Malik highlighted that gas rates have not been climbed for the past year.

Notably, the minister remarked the administration is already working with the World Bank on comprehensive gas sector reforms, aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable gas sector.

Discussing the situation in Balochistan, the SSGCL Board welcomed the constitution of the political committee under the Deputy Prime Minister to look into the province's challenges and appreciated the initiative as a positive step towards addressing longstanding problems in Balochistan.

Meanwhile, the minister directed that gas supply problems in Balochistan be resolved on a priority basis, alongside addressing technical challenges, infrastructure constraints and gas theft. He stressed the need for sustainable solutions to improve gas availability and service delivery in the province.

While pursuing reforms to ensure the long-term sustainability of the business, the federal minister continued that public service must remain the top priority in all operational, financial and strategic decisions. Govt intends deregulation, unbundling of Sui businesses.

Pakistan govt finalises plan to roll out RLNG connections nationwide for domestic consumers. Minister orders Ogra to review gas firms' revenue needs. Sui Southern Gas Firm Limited.

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In short, govt mulls replacing gas subsidy slabs with single price is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.