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Government to Introduce Uniform Gas Tariff, Ending 12-Slab System

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Animated editorial illustration for: Government to Introduce Uniform Gas Tariff, Ending 12-Slab System
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Zara Jafri
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At a glance

  • Government plans to replace 12-slab gas system with a single tariff.
  • Proposed average rate is Rs 1,708 per MMBTU, effective July 1, 2027.
  • Domestic prices expected to rise; industrial rates to fall.

Story so far

The Government of Pakistan is moving to overhaul its gas pricing structure to meet conditions set by the International Monetary Fund (IMF). The Ministry of Petroleum has initiated plans to replace the existing 12-slab tariff system with a single, uniform rate for all consumers. The proposed changes, targeted for implementation by July 2027, aim to eliminate cross-subsidies and shift from consumption-based relief to income-based support for low-income households.

Latest development

The government has decided to introduce a uniform gas tariff from July 1, 2027, replacing the current 12-slab system. The move, which requires IMF approval, is expected to set an average rate of Rs 1,708 per MMBTU, raising prices for domestic users and lowering them for industry.

Responses

  1. Arif Ibad 40 mins ago

    This seems like a move to make the cost of gas more transparent for businesses. The challenge will be how effectively the BISP support can cushion the impact on low-income households who will see their bills rise.

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