Overview
- The Petroleum Division this week moved a formal summary to the Council of Common Interests Economic Coordination Committee seeking release of Rs162 billion to fund targeted subsidies through programmes such as BISP.
- Officials propose a single average gas price of Rs1,708 per MMBtu to replace the current 12 slabs and eliminate about Rs160 billion a year in cross-subsidies now paid by CNG, cement, industry and higher-end households.
- The plan would shift support for low-income or 'protected' households from cheaper per-unit gas to income-based cash transfers that require household verification and delivery through existing welfare channels.
- Final timing and conditions remain unresolved and the proposal is expected to be discussed during the IMF’s fourth programme review in September–October 2026 with implementation hoped for in the next financial year.
- Petroleum Division has tied the tariff change to parallel fixes including settling legacy arrears, clearing pending GST refunds, adjusting regasified LNG tariffs for power, and tackling unaccounted-for-gas and theft, notably issues at Sui Southern Gas Company in Balochistan.