Petroleum minister calls for single gas price, targeted subsidies

KARACHI: Federal Minister for Petroleum Ali Pervaiz Malik has directed the Board of Sui Southern Gas Company Limited (SSGCL) to develop a comprehensive strategy and sustainable business model, with a particular focus on controlling Unaccounted-for-Gas (UFG), to transform the company into a financially viable organisation.

The minister chaired a meeting with the SSGCL Board chairman and directors, managing director and senior management in Karachi to review the company’s performance, key achievements, operational challenges and priorities for future reforms.

The SSGCL chairman welcomed the minister, while the managing director briefed him on the company’s milestones, achievements and challenges. The management highlighted significant improvements in the gas distribution system, with UFG reduced by approximately 57% in volumetric terms.

The meeting was informed that there was no gas load-shedding for K-Electric, industrial consumers and fertiliser plants, while domestic consumers were being provided gas three times a day.

Ali Pervaiz Malik noted that gas prices had not been increased for the past year, while the growth in gas-sector circular debt had nearly been brought to a halt, describing the developments as important progress towards stabilising the sector.

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The minister said the existing system of providing gas subsidies through pricing slabs needed to be revisited. He stressed the need to move towards a single, fair gas price for all consumers, while protecting vulnerable segments through targeted social protection programmes.

According to the minister, such a transition would help spur economic activity and discourage consumers from switching to alternative fuels.

He said the government was already working with the World Bank on comprehensive reforms in the gas sector aimed at addressing structural challenges and creating a more efficient, sustainable and financially viable system.

The minister also directed that gas supply issues in Balochistan be addressed on a priority basis, along with technical challenges, infrastructure constraints and gas theft.

He stressed the need for sustainable solutions to improve gas availability and service delivery in the province.