The government is considering replacing the existing slab-based gas subsidy system with a single gas price for all consumers, with vulnerable groups to be protected through targeted social protection programs, Federal Minister for Petroleum Ali Pervaiz Malik said.
The federal minister said the current system of gas subsidies through different pricing slabs needs to be revisited, arguing that a single fair price could encourage economic activity and reduce the shift of consumers toward alternative fuels.
The minister made the remarks while chairing a meeting with the chairman and board of directors, managing director and senior management of Sui Southern Gas Company Limited in Karachi to review the company’s performance, operational challenges and future reforms.
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.
The meeting was informed that SSGCL has reduced unaccounted for gas by approximately 57 percent in volumetric terms. It was also told that there is currently no gas load shedding for K Electric, industrial consumers and fertilizer plants, while domestic consumers are receiving gas three times a day.
The petroleum minister said gas prices have not been increased for the past year, while the increase in gas circular debt has nearly been stopped. He added that the government is working with the World Bank on comprehensive gas sector reforms to address structural issues and improve the efficiency and financial sustainability of the gas sector.
The minister also directed that gas supply issues in Balochistan be addressed on a priority basis, along with technical problems, infrastructure constraints and gas theft. He said 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 government pursues reforms aimed at ensuring the company’s long term sustainability.
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