ISLAMABAD: The federal government is working on a plan to introduce a uniform gas tariff across Pakistan from July 2027.
Sources said the proposed reform is aimed at meeting another commitment under Pakistan’s International Monetary Fund (IMF) programme. The Petroleum Division is currently working to phase out the existing cross-subsidy system for gas consumers.
Under the proposed mechanism, the current 12 consumer slabs would be replaced with a single tariff applicable nationwide. The Petroleum Division has completed its preliminary work and will submit the proposed framework to the IMF for approval, sources said.
The reform would remove the existing cross-subsidy, estimated at Rs162 billion, while financial support for gas consumers would be determined on the basis of household income instead of gas consumption.
According to sources, eligible low-income households would receive assistance through the Benazir Income Support Programme (BISP).
The Petroleum Division has proposed an average tariff of Rs1,708 per million British thermal units (MMBtu) for all categories of consumers, with the new system targeted for implementation from July 1, 2027.
Under the proposed structure, consumers would no longer qualify for a lower gas rate solely because of reduced consumption.
The new mechanism is also expected to provide some tariff relief to industrial and commercial consumers, sources said.
Petroleum Division officials said the proposed changes are intended to make the subsidy system more transparent and ensure financial support reaches consumers who genuinely qualify for assistance.
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