The government has decided to end the Rs140 billion cross-subsidy provided to gas consumers, sources said. Gas concessions will be phased out by January 2027.

Subsidies on gas and electricity will no longer be provided on the basis of consumption but on the basis of income, sources said.

Data from the Benazir Income Support Program will be used to identify low-income households eligible for assistance, according to sources.

Preparations are underway to remove the additional burden on industries, the CNG sector, commercial consumers and the cement sector, sources said.

A proposal is under consideration to charge the same average gas rate from all consumers, sources added.

The government has also decided to provide direct financial assistance to low-income consumers, according to sources.

In Islamabad, the average gas tariff has been set at Rs1,750 per MM