ISLAMABAD: The Pakistan government is preparing to introduce a uniform gas tariff across the country from July 2027 as part of reforms linked to its International Monetary Fund (IMF) programme.
According to well-placed sources, the Petroleum Division is working to abolish the existing cross-subsidy mechanism and replace the current system of 12 consumer slabs with a single tariff structure.
Sources said the Petroleum Division has completed its proposed uniform gas tariff mechanism, which will be presented to the IMF for approval.
Under the proposal, the existing cross-subsidy of Rs162 billion would be eliminated. Instead, gas subsidies would be linked to household income rather than consumption.
The government has proposed an average gas tariff of Rs1,708 per million British thermal units (MMBtu) for all consumers. The new system is proposed to take effect from July 1, 2027.
Under the proposed mechanism, consumers would no longer qualify for lower gas rates simply because of lower consumption. The reform is also expected to provide tariff relief to industrial and commercial consumers.
Sources said low-income households would receive financial assistance through the Benazir Income Support Programme (BISP), allowing subsidies to be targeted toward consumers based on their financial needs.
Petroleum Division officials said the proposed reform aims to make the subsidy system more transparent and ensure financial support reaches households that genuinely qualify for assistance.
The government’s plan remains subject to approval from the IMF and implementation of the proposed tariff framework.
