The government has decided to abolish the existing 12 gas tariff slabs and introduce a uniform gas price for consumers, marking a major potential change to the country's gas pricing structure.

Under the proposed system, protected consumers would no longer receive support through the existing tariff structure. Instead, they are expected to be shifted to an income-based subsidy system.

Targeted subsidy for protected consumers

The government plans to provide targeted financial support to eligible protected consumers so that low-income households can continue to receive relief despite the introduction of a single gas tariff.

The proposed change is aimed at making the subsidy system more focused and ensuring that government support reaches households that genuinely need assistance.

IMF review to finalize timeline

The government and the International Monetary Fund are expected to discuss and finalize a timeline for eliminating cross-subsidies and introducing a single gas tariff during the IMF's fourth review, expected to take place between September and October 2026.

The discussions are likely to determine how and when the new pricing mechanism will be implemented.

Major shift in gas pricing

The proposed reform could significantly change how gas bills are calculated for households across Pakistan.

Currently, consumers are divided into different tariff categories, with protected users receiving comparatively lower rates. Under the new system, a uniform tariff could simplify pricing while targeted subsidies would be used to provide relief to deserving households.

However, the final impact on individual consumers will depend on the approved tariff, eligibility criteria for subsidies and the implementation timeline agreed upon by the government and IMF.