Pakistan Plans Uniform Gas Tariff to End Cross-Subsidies

The Petroleum Division of Pakistan has finalized plans to implement a uniform gas tariff across the country starting July 1, 2027. This reform will replace the current 12-slab pricing system and eliminate the existing cross-subsidy mechanism, establishing a uniform average rate of Rs1,708 per million British thermal units (MMBtu).

To mitigate the financial impact on lower-income households, the Government of Pakistan intends to allocate Rs162 billion for targeted financial support. The restructuring aims to streamline pricing and remove the complexities of the slab-based system.

The implementation of these reforms is subject to formal approval from the International Monetary Fund.