• Minister says vulnerable consumers should receive targeted support
• Sui Southern told to come up with ‘sustainable business model, cut unaccounted-for losses
ISLAMABAD: The government on Thursday hinted at introducing a uniform average gas price for all consumers, replacing the existing slab-based pricing system that involves cross-subsidies and budgetary support for different categories.
The average prescribed gas price, determined by the Oil and Gas Regulatory Authority (Ogra) based on the revenue requirements of gas companies, currently stands at around Rs1,700 per million British thermal units (mmBtu).
However, consumers are charged different rates ranging from about Rs500 to Rs4,300 per mmBtu depending on consumption and category.
The regulator and the International Monetary Fund (IMF) have asked the government to eliminate subsidies, recover the actual cost of gas supply from consumers and provide direct support to vulnerable segments where necessary.
The issue came under discussion on Thursday when Petroleum Minister Ali Pervaiz Malik met the board of directors of Sui Southern Gas Company (SSGC).
“The existing system of gas subsidies via pricing slabs needs to be revisited,” the minister was quoted as saying in an official statement.
“He emphasised the need to transition to a single, fair gas price for all consumers, while vulnerable segments should be protected through targeted social protection programmes. This transition would spur greater economic activity while quelling migration of customers to alternative fuels,” the statement said.
Mr Malik directed the SSGC board to develop a comprehensive strategy and sustainable business model, with particular focus on controlling unaccounted-for gas (UFG), to transform the company into a financially viable organisation while keeping public service as its foremost priority.
The meeting also reviewed the company’s performance, key achievements, operational challenges and future reform priorities. The SSGC’s managing director briefed the minister on the company’s milestones, achievements and challenges. The management highlighted an improvement in the gas distribution system, saying UFG had been reduced by approximately 57 per cent in volumetric terms.
The meeting was informed that there was no gas loadshedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers were being provided gas three times a day.
Mr Malik said gas prices had not been increased for the past year, while the accumulation of gas circular debt had nearly been halted, marking progress towards stabilising the sector.
He said Ogra had determined a reduction in prescribed gas prices, but the government had absorbed the impact, resulting in a reduction of around Rs55 billion in gas circular debt.
The minister urged the SSGC board to formulate a comprehensive reform strategy aimed at making the company self-sustaining, improving operational efficiency, reducing losses and gas theft.
Petroleum Secretary Hamed Yaqoob Sheikh emphasised that the board operated independently in accordance with the spirit of the State-Owned Enterprises (SOE) Act. He said the board should exercise its mandate and take all necessary measures to improve the efficiency and ensure the long-term sustainability of SSGC.
The minister said the government was 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 SSGC board welcomed the constitution of a political committee under Deputy PM Ishaq Dar to examine the province’s challenges, describing the initiative as a positive step towards addressing its long-standing issues.
The minister directed that gas supply issues in Balochistan be addressed on a priority basis.
Published in Dawn, August 28th, 2026
