PM forms committee to address Weighted Average Cost of Gas implementation

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a committee on the implementation of Weighted Average Cost of Gas (WACOG) and tasked the committee to complete its deliberation and present its recommendations with a stringent timeline of seven days.

As per sources, the Minister for Petroleum will head the committee which is mandated to delve into the multifaceted issues associated with WACOG and present actionable recommendations within seven days. 

Other members include the Minister for Power, the Minister for Industries, and secretaries from relevant divisions. Captain (R) Muhammad Mahmood and Chief Secretaries from Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan have been enlisted as members. 

Secretary Petroleum Division will serve as the committee’s secretary, ensuring streamlined coordination and communication.

According to the Terms of Reference (ToRs), the committee will examine the whole spectrum of issues related to WACOG. 

• Impact of gas system-wide WACOG on liquidity/efficiency in the gas market place including circular debt. 
• Impact of system-wide WACOG on domestic power, industrial (including fertilizers), commercial, and captive power sectors. 
• Propose a technology-based foolproof and efficient system for a direct subsidy to farmers by provinces to mitigate the impact of WACOG on the agriculture sector’s productivity.

The Petroleum Division is tasked with notifying the committee and providing secretarial support, sources added.   

The sources said that the WACOG affects a broad range of sectors, highlighting its significance in the country’s energy framework. 

They added that the inclusion of high-level ministers and secretaries indicates the government’s serious approach to addressing the WACOG-related issues. The directive for technology-based solutions for subsidy distribution suggests a push towards modernization and efficiency, said sources.