Gas Subsidy System and Price Slabs Need Revision, Says Ali Pervaiz Malik
KARACHI: The current gas subsidy policy and pricing slabs need to be thoroughly revamped to ensure sustainability of the gas sector in the long run, said Federal Minister for Petroleum Ali Pervaiz Malik.
The Federal Minister held a high level review meeting of Sui Southern Gas Company Limited (SSGCL) in Karachi, where the institution’s operational performance, institutional reforms, administrative affairs and financial viability were reviewed.
This represents the overall gas reductions achieved by SSGCL within the project.This is a briefing about the overall gas reductions achieved under SSGCL within the project.
The Managing Director and some of the senior officers of SSGCL provided a briefing on the performance of the institution during the session, stating that tremendous efforts have been made to improve the gas distribution network and also achieved an outstanding reduction of 57 percent in Unaccounted-for Gas (UFG) losses.
Uninterrupted gas supplies to K-Electric, industrial consumers and the fertilizer plants are being maintained and domestic households are being supplied thrice a day, the forum was told.
The directives were issued on Gas Theft, Balochistan Supplies and Sector Reforms.
SSGCL Board Member Ali Pervaiz Malik called upon the authorities to pay special attention to operational efficiency, revenue recovery and maximum utilization of the resources, while cautioning the government to act for strengthening the sustainability of the institutions.
The Federal Minister said it was essential to reduce gas theft and operational losses in order to ensure the financial sustainability of SSGCL, as gas supply problems in Balochistan needed to be addressed with urgency, along with measures to address technical hitches and infrastructure-related issues.
Pointing to the bigger picture of economic policies, Malik said gas prices have remained steady over the last year and the gas circular debt has almost been brought to a standstill. He said the government, along with the World Bank, is actively making efforts for detailed structural changes in the gas sector. He explained the need for a gradual transition towards equal and equitable gas tariffs for consumers, and that social safety nets are needed to shield vulnerable groups within the population. The minister shared his interpretation of the energy reform’s goals as creating a more transparent, efficient and financially sustainable system which provides better energy services to consumers.