The government is set to introduce a uniform gas pricing system for all consumer categories, with a final decision expected in the next one to two months, according to Presstonight. This new pricing structure will phase out the existing cross-subsidy where the industrial sector supports domestic and commercial consumers.
Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, announced the update during the launch of the “Socioeconomic Insight and Analytics (SIA) on In-House Power Generation for Industry and its Economic Impact” study. He emphasized the need for a consistent gas pricing system across various sectors.
Leghari also touched on the sensitive issue of captive power plants, which are currently connected to the national grid and are expected to be disconnected from gas supply. He noted that this move aligns with agreements made with the International Monetary Fund (IMF) and other international development agencies.
In addition, the minister revealed that the latest Indicative Generation Capacity Expansion Plan (IGCEF) is being reversed, with several high-cost power tariff projects being removed from the plan, as they violated the least-cost project formula.
Furthermore, Leghari stated that the Central Power Purchase Agency (CPPA)-G will not sign any new power purchase agreements for additional electricity during the current government’s tenure.
