More Home Consumers to Get Cheaper Gas

After a directive from the Cabinet Committee on Energy (CCOE), the administration is considering further gas tariff slabs to bring more consumers into the protected category and offer them access to lower gas rates.

Key points

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• The division additionally cited litigation over consumer gas rate notifications, lower demand from captive power plants and CNG stations, and RLNG tariff actualization from February 2025.
• The CCOE has asked the Ministry of Energy's Petroleum Division to examine a more rational classification of protected consumers.
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• To ease the financial pressure, the Petroleum Division sought settlement of power sector receivables against domestic gas, RLNG and oil supplies, including Rs.

Notably, the CCOE has asked the Ministry of Energy's Petroleum Division to examine a more rational classification of protected consumers.

Meanwhile, the move comes as the administration works to contain gas sector circular debt. It world Bank and KPMG assessments stated rose sharply between 2019 and 2023, mainly due to delayed gas cost increases and diversion of RLNG to domestic consumers. RLNG Rates Reduced by Rs. 1, 000.

While power sector problems add to the financial pressure, the Petroleum Division remarked the debt has continued to grow as Sui gas businesses recover less than the value of gas they supply. The rising debt has additionally weakened the ability of state-owned exploration and production businesses to invest in their core businesses.

Key factors include delayed consumer gas cost revisions from 2013 to 2022, gaps between OGRA-determined revenue requirements and Sui business collections, low power sector recoveries, winter diversion of RLNG to domestic consumers from 2018 to 2023, inadequate subsidy allocations, and pending GST refunds from the FBR.

Meanwhile, the division additionally cited litigation over consumer gas rate notifications, lower demand from captive power plants and CNG stations, and RLNG tariff actualization from February 2025. Sizeable Consumers May Face Higher Electricity Bills.

While SSGC's bill recovery matters in Balochistan require high level engagement, it remarked circular debt rose sharply between June 2019 and June 2023 before showing a flatter trend through June 2026.

To ease the financial pressure, the Petroleum Division sought settlement of power sector receivables against domestic gas, RLNG and oil supplies, including Rs. 42 billion in RLNG actualization charges. It additionally sought Rs. 83 billion in GST refunds from the FBR and Rs. 160 billion in budgetary backing to eliminate domestic cross subsidies and provide relief to industry.

For context, the CCOE directed authorities to resolve power sector receivables, tax refunds and subsidy funding problems in consultation with stakeholders. The Finance Division remarked the gas sector Circular Debt Management Plan would additionally be discussed with the IMF during the September loan program review. Stay Connected with ProPakistani.

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In short, more Home Consumers to Get Cheaper Gas is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.