Pakistan

Pakistan plans uniform gas tariff from July 2027

ISLAMABAD: The Petroleum Division has decided to seek approval from the International Monetary Fund (IMF) for the implementation of a uniform gas tariff across Pakistan from July 1, 2027.

Under the proposed reforms, the government would have to abolish the existing cross-subsidy system and allocate around Rs162 billion for targeted financial assistance to low-income households.

The proposed changes would also eliminate Pakistan’s existing 12-slab gas tariff structure, under which consumers currently pay different rates based on their monthly gas consumption.

Instead, all consumer categories would gradually be shifted towards a uniform average tariff of around Rs1,708 per MMBtu.

The proposed reform is aimed at replacing the existing cross-subsidy mechanism with targeted support for low-income consumers while moving towards a more uniform gas pricing structure nationwide.

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