In a significant move expected to impact millions of households, the federal government is set to raise the fixed charges on domestic gas consumption starting July 1, 2025, as part of its broader fiscal restructuring plan for the energy sector.
The decision comes following a high-level meeting of the Economic Coordination Committee (ECC) of the Cabinet, where the committee agreed to revise the natural gas pricing structure for the upcoming fiscal year 2025–26. While the actual gas consumption tariffs will remain unchanged for the domestic sector to shield households from further inflationary pressure, the burden will shift to higher fixed monthly charges, aimed at recovering the mounting asset and operational costs of gas supply infrastructure.
Key Changes in Fixed Charges
According to the summary approved by the ECC, which was submitted by the Petroleum Division, the following changes in fixed charges for domestic gas users are proposed:
- Consumers previously paying Rs. 400 per month will now be billed Rs. 600.
- Those who were paying Rs. 1,000 will now be charged Rs. 1,500.
- Households that were earlier paying Rs. 2,000 in fixed charges will now see their bills rise to Rs. 3,000 per month.
These revised fixed rates are expected to take effect from July 1, 2025, pending final approval from the federal cabinet, which typically endorses ECC decisions barring extraordinary opposition.
The government has justified the decision by pointing to escalating costs of gas infrastructure maintenance, debt servicing, and the need for improved supply efficiency. According to senior officials familiar with the matter, the increase in fixed charges is designed to generate stable revenue for the gas sector and enable better management of transmission and distribution assets, especially in light of natural gas shortages and circular debt concerns.
No Increase in Consumption Tariffs—for Now
While the fixed component of the gas bill will rise, the actual price per unit of gas consumed will remain unchanged for domestic users. This move, the ECC stated, was intended to shield the general public from further inflationary stress, especially amid rising utility costs and economic uncertainty.
The government has made a conscious decision to keep usage-based tariffs stable while increasing fixed charges slightly, which will help improve cost recovery without penalizing essential gas usage, an official source said.
Potential Impact on Households
For middle- and lower-income families, this increase in fixed charges—ranging from Rs. 200 to Rs. 1,000—could significantly raise their monthly energy bills, even if their consumption remains the same. Critics argue that the hike will disproportionately affect small households that consume less gas but will now have to bear a larger share of infrastructure costs.
However, government officials claim that the revision was carefully structured to minimize its impact on the most vulnerable consumers, and that only mid- to high-tier consumers will face the steeper end of the hike.
Industry Response and Public Sentiment
The decision has drawn mixed reactions. Energy experts agree that some form of financial restructuring is necessary to prevent a collapse of the natural gas supply chain, but question whether raising fixed charges is the most equitable solution.
Public reaction on social media and news forums has been swift, with many citizens criticizing the government for quietly increasing the cost of living under the guise of maintaining overall price stability.
Consumer rights groups are calling for greater transparency and justification of infrastructure costs, and have urged the federal cabinet to review the decision before final implementation.
The proposal will now move to the federal cabinet for final approval, which is expected to take place in the coming days. If approved, the new fixed gas charges will come into force on July 1, 2025, as the country enters the new fiscal year.
The government has also indicated that further reforms to the gas sector, including new metering systems and subsidy targeting mechanisms, are in the pipeline to ensure fairer pricing and efficient energy delivery.
As the economic pressure continues to mount, the coming months will reveal whether this move strikes the right balance between fiscal recovery and consumer welfare—or leads to yet another wave of discontent among the public.
