ISLAMABAD (PEN) : The government is considering introducing a price equalisation levy on wellhead gas to provide financial relief to protected residential and industrial consumers, while also reducing the federal budget’s subsidy burden by Rs10-15 billion annually. This move is part of a broader strategy to reform Pakistan’s petroleum sector and is key to the Integrated Energy Plan, which aims to make the country’s gas companies self-sustaining and profitable, setting the stage for eventual privatisation.
Petroleum Minister Dr. Musadik Malik is spearheading the development of a blended revenue model, which combines wellhead gas, pipeline gas, and imported liquefied natural gas (LNG) into a cohesive plan based on the weighted average cost of gas (WACOG). This model is crucial for ensuring the sustainability of the gas network.
To support these efforts, the Petroleum Division has enlisted the expertise of local and international consulting firms, along with recruiting senior technical officials. They’re working on creating a wholesale gas market by separating pipeline operations from distribution companies—a challenging task that could significantly transform Pakistan’s energy landscape.
As Pakistan faces growing energy demands, largely dependent on imported fossil fuels, these reforms aim to attract foreign investment and modernize the gas sector. With international interest in restructuring and potentially privatising companies like SSGCL and SNGPL, the government hopes to implement best practices that will secure the country’s energy future.
