ISLAMABAD: The government is considering replacing the current slab-based gas subsidy system with a single price for all consumers while protecting vulnerable households through targeted social protection measures, Federal Minister for Petroleum Ali Pervaiz Malik said.
Malik made the remarks during a meeting in Karachi with the chairman, board of directors, managing director and senior management of Sui Southern Gas Company Limited to review performance, operational challenges and reform priorities.
“The existing system of gas subsidies via pricing slabs needs to be revisited,” Malik said. He emphasized transitioning to a single fair price for all consumers, with vulnerable segments shielded through social protection programs, adding that the move would spur economic activity and curb customer migration to alternative fuels.
Malik directed the SSGCL board to develop a comprehensive strategy and sustainable business model with a focus on unaccounted-for gas control to transform the company into a financially viable organization while keeping public service as the foremost priority.
SSGCL Managing Director briefed the minister on the company’s milestones and challenges, reporting a significant improvement in the distribution system with UFG reduced by approximately 57% in volumetric terms.
Officials told the meeting there is no gas load-shedding for K-Electric, industrial consumers and fertilizer plants, while domestic consumers receive gas three times daily.
Malik noted that gas prices have not increased over the past year and that the rise in gas circular debt has nearly been halted, marking progress toward sector stabilization.
The minister said the government is working with the World Bank on comprehensive gas sector reforms aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable sector.
Discussing Balochistan, the SSGCL board welcomed the formation of a political committee under the deputy prime minister to examine the province’s challenges, calling it a positive step toward resolving longstanding issues.
Malik directed that gas supply issues in Balochistan be prioritized, alongside addressing technical challenges, infrastructure constraints and gas theft, stressing sustainable solutions to improve availability and service delivery.
“Public service must remain the top priority in all operational, financial and strategic decisions,” Malik said, while pursuing reforms to ensure the company’s long-term sustainability.
