Ministry seeks govt support for cross-subsidy

The Petroleum Division has requested budgetary support of Rs160 billion from the federal government for financial year 2026-27 to implement a cross-subsidy for protected domestic gas consumers. This measure aims to provide tariff relief to other economic sectors such as industries, commercial businesses, CNG stations, and cement producers. The demand was presented during a Cabinet Committee on Energy (CCoE) meeting chaired by Prime Minister Shehbaz Sharif, where the division also sought support for settling legacy arrears for indigenous gas supply to power producers, actualisation of RLNG tariffs, resolution of GST refunds with FBR, and addressing gas theft issues in Balochistan via a political committee. The projected cross-subsidy highlights significant differences in consumer categories, with protected domestic consumers receiving the largest subsidy, while non-protected domestic and bulk consumers are expected to generate surpluses.