The Ministry of Petroleum has begun work on a uniform gas tariff that would abolish the slab system and apply a single average price of Rs1,708 per million British thermal units (MMBTU) to all consumers from July 1, 2027, sources said.
The proposal would replace the existing 12-slab structure. The policy will require approval from the International Monetary Fund (IMF), to which Pakistan has committed to eliminating cross-subsidies in the gas sector.
Under the plan, gas subsidies would no longer be tied to consumption. Instead, low-income households would receive support based on household income. The assistance would be delivered through the Benazir Income Support Programme (BISP).
The current system allows low-volume consumers to pay very low rates, with protected consumers using gas at between Rs200 and Rs350 per MMBTU. To phase out cross-subsidies, the government will allocate Rs162 billion in the budget.
Once implemented, the new policy is expected to raise gas prices significantly for domestic consumers. Rates for the industrial and commercial sectors are likely to fall considerably.
