Single gas price for all consumers needed as existing slab system needs review: petroleum minister

Petroleum Minister Ali Pervaiz Malik on Thursday stressed that the need to transition to a single fair gas price for all consumers, saying that the existing system of slabs needs to be revisited.

According to a statement issued by the Petroleum Division, Malik chaired a meeting with the SSGCL chairman and Board of Directors, managing director and senior management in Karachi to review the company’s performance, key achievements, operational challenges and future reform priorities.

Malik highlighted that gas prices had not been increased for the past year, while the increase in gas circular debt had nearly been stopped, describing these as important progress towards stabilisation of the gas sector.

The minister said the existing system of gas subsidies through pricing slabs needed to be revisited. He emphasised the need to transition to “a single fair gas price for all consumers”, while protecting vulnerable segments through targeted social protection programmes.

According to the statement, Malik said the transition would spur greater economic activity while reducing the migration of customers to alternative fuels.

The statement said that the minister had directed the Board of Sui Southern Gas Company Limited (SSGCL) to develop a comprehensive strategy and sustainable business model focused on controlling Unaccounted-for-Gas (UFG) to transform the company into a financially viable organisation, with public service as the foremost priority.

The meeting was informed that SSGCL had significantly improved its gas distribution system, with UFG reduced by approximately 57% in volumetric terms, the statement said.

It was also informed that there was no gas load-shedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers were being provided gas three times a day.