KARACHI – Senate on Thursday approved long-pending legislation to implement the weighted average cost of gas (WACOG) amid the opposition’s protest.
WACOG is a new method of fixing the price by taking into account the blended costs of both locally produced and imported gas as the current mechanisms that ring-fences the use of imported fuel.
The development was announced by Minister of Energy Hammad Azhar on Twitter, stating: “WACOG bill has been passed today by senate as well. It is a historic and long-pending reform that will ensure the energy security of Pakistan”.
The approval of the bill will pave way for the government to reform gas pricing structure, remove anamolies and enhance supplies of imported gas.
“This reform is as significant as the approval of IGCEP model for power purchase a couple of months ago. Both historic reforms in power and petroleum sector have been carried out by PTI govt in the last six months,” Azhar added.
Under the 18th constitutional amendment, a gas-producing province has the first right to use its natural reserves. Therefore, gas-producing smaller provinces have been opposing the new legislation as they believe that the reforms will extend more benefits to Punjab.
