Petroleum Minister calls for review of gas subsidy system, pricing slabs

The federal petroleum minister chaired a meeting of Sui Southern Gas Company Limited (SSGCL) in Karachi, where the company’s performance, reforms, operational matters and financial sustainability were reviewed. SSGCL’s managing director and officials briefed the meeting on the company’s performance.

The officials said the gas distribution system had witnessed significant improvement, while the Unaccounted-for-Gas (UFG) rate had recorded a 57 percent reduction. The meeting was informed that no gas load-shedding was being carried out for K-Electric, industrial consumers and fertilizer plants, while domestic consumers were being provided gas three times a day.

Ali Pervaiz Malik directed the SSGCL board to strengthen the company’s sustainability and address administrative challenges. He asked the board to focus particularly on operational performance, revenue recovery and better utilisation of resources. The federal minister said reducing gas theft and losses was essential for SSGCL’s financial sustainability.

He directed that gas supply issues in Balochistan be addressed on a priority basis and that gas theft, technical issues and infrastructure-related obstacles be effectively tackled. He said gas prices had not been increased for the past year, while the increase in gas circular debt had been largely contained.

The government is also working on comprehensive reforms in the gas sector with the support of the World Bank, he added. Ali Pervaiz Malik said a phased transition towards fair and uniform gas pricing for all consumers was necessary, while vulnerable segments should be protected through targeted social protection programmes.

He said the objective of reforms in the gas sector was to make the system more efficient, transparent and financially sustainable, enabling better services for consumers and helping find permanent solutions to the fundamental challenges facing the energy sector.