The government has hinted at introducing uniform gas pricing for consumers across Pakistan, replacing the existing slab-based system. Petroleum Minister Ali Pervaiz Malik said the current subsidy structure needs to be reconsidered.
Pakistan currently uses different gas rates for consumers based on their consumption levels. The average prescribed price stands at around Rs1,700 per million British thermal units, while actual consumer rates range from about Rs500 to Rs4,300.
The Oil and Gas Regulatory Authority and the International Monetary Fund have urged the government to reduce broad subsidies and recover the actual cost of gas supply. They have also supported targeted assistance for consumers who need protection.
During a meeting with the Sui Southern Gas Company board in Karachi, Malik said the existing pricing system should be revisited. He proposed moving towards a single and fair gas price while protecting vulnerable households through targeted social protection programmes.
Federal Minister for Petroleum Ali Pervaiz Malik chaired a meeting with SSGCL Board and management in Karachi, directing a sustainable business model focused on UFG reduction, efficiency, revenue recovery and curbing gas theft. pic.twitter.com/ektYGDSFrG
— Petroleum Division, Ministry of Energy (@Official_PetDiv) August 27, 2026
The proposed uniform gas pricing model is intended to reduce distortions caused by cross-subsidies and discourage consumers from switching to alternative fuels. The government believes a more consistent pricing structure could also support economic activity.
Malik directed SSGC to prepare a comprehensive reform strategy focused on reducing unaccounted-for gas, losses and theft. The company was also asked to improve revenue recovery, operational efficiency and resource utilisation while maintaining public service as a priority.
The minister said the government was working with the World Bank on wider gas sector reforms. He also directed SSGC to address gas supply problems in Balochistan, including infrastructure constraints and technical issues, while developing sustainable solutions for improved service delivery.
