Govt plans single gas tariff from July 2027, replacing slab system
The Petroleum Ministry has started work on a single gas tariff plan that is likely to be introduced from July 1, 2027, replacing the existing 12-slab pricing system, sources said on Tuesday.
The proposed changes are expected to significantly increase gas prices for domestic consumers, while industrial and commercial consumers could see substantial reductions in their tariffs, the sources said.
Under the proposed plan, all consumers could gradually be shifted to an average tariff of Rs1,708 per million British thermal units (MMBtu), while the existing cross-subsidy and consumption-based subsidy systems would be phased out.
The sources said approval for the new gas tariff policy would be sought from the International Monetary Fund (IMF), with the government considering linking subsidies to household income rather than gas consumption.
About Rs162 billion would need to be allocated in the next budget to end cross-subsidies, the sources said.
Currently, protected consumers who use less gas pay significantly lower rates, ranging from around Rs200 to Rs350 per MMBtu.