Govt to decides to lift ban on new domestic gas connections

The federal government has decided to lift the three-year ban on new domestic gas connections, finalising recommendations for a revised policy that will take effect from the next fiscal year.

According to officials of the Petroleum Division, new household connections will be issued on the basis of liquefied natural gas (LNG) tariffs. The ban had been imposed in 2021 to address gas shortages, but thousands of applications have since remained pending, some dating back to 2017.

Currently, an estimated 3.5 million requests for domestic gas connections are awaiting approval across the country. Of these, around 250,000 applicants have already deposited demand notice fees ranging from Rs3,000 to Rs10,000, while some 4,000 applicants have paid an additional urgent fee of Rs25,000.

Under the new plan, the proposed demand notice fee for regular applications is Rs18,000, while an urgent connection may cost Rs80,000.

Imported LNG connections for houses of 5 to 10 marlas are expected to cost around Rs40,000, including Rs20,000 each for the demand notice and security deposit. For houses larger than 10 marlas, the demand notice will be Rs23,000 with a Rs20,000 security fee.

Officials confirmed that old applicants will be required to make additional payments, with priority given to those who clear dues in full. The government has also scrapped the annual cap of 100,000 new connections, citing estimates that LNG supply is sufficient for six million connections. However, the actual rollout will depend on meter availability with gas companies.

The Petroleum Division said that once the federal cabinet formally approves the decision, gas companies will begin issuing demand notices and payment schedules to applicants.