The government is considering additional gas tariff slabs to bring more household consumers into the protected category and provide them with access to lower gas rates. The move follows a directive from the Cabinet Committee on Energy (CCOE), which has asked the Petroleum Division of the Ministry of Energy to review the classification of protected consumers.
The proposal comes as the government seeks to address the growing gas sector circular debt. The Petroleum Division said the debt has been driven by delayed gas price revisions, gaps between OGRA-determined revenue requirements and collections by Sui gas companies, diversion of RLNG to domestic consumers during winter, inadequate subsidies, and pending tax refunds.
The division also highlighted power sector recovery issues, litigation over gas price notifications, declining demand from captive power plants and CNG stations, and RLNG tariff adjustments as factors affecting the sector’s finances.
To ease the financial pressure, the Petroleum Division has sought the settlement of power sector receivables against domestic gas, RLNG and oil supplies, including Rs. 42 billion in RLNG actualization charges. It has also requested Rs. 83 billion in GST refunds from the Federal Board of Revenue and Rs. 160 billion in budgetary support to eliminate domestic cross-subsidies and provide relief to industry.
The CCOE has directed relevant authorities to address power sector receivables, tax refunds and subsidy funding in consultation with stakeholders. The Finance Division has also said that the Gas Sector Circular Debt Management Plan will be discussed with the IMF during the September loan program review.
