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ISLAMABAD: The government on Thursday hinted at introducing a uniform average gas price for all consumers, replacing the existing slab-based pricing system for different categories that involves cross-subsidies and budgetary subsidies.
The average prescribed gas price, determined by the Oil and Gas Regulatory Authority (Ogra) based on the revenue requirements of gas companies, currently stands at around Rs1,700 per million British thermal units (mmBtu). However, gas is sold to consumers at different rates, ranging from Rs500 to Rs4,300 per mmBtu as consumption rises.
The regulator and the International Monetary Fund have asked the government to eliminate subsidies, recover the true cost of gas supply from all consumers and provide direct subsidies where necessary.
On Thursday, the matter came under discussion as Petroleum Minister Ali Pervaiz Malik met with the Sui Southern Gas Company’s (SSGC) board of directors.
