The caretaker government is reportedly set to announce an increase in gasprices, responding to a request from the International Monetary Fund (IMF).This decision comes after the previous PDM government had postponed a gasprice hike.
The IMF has insisted on a substantial 45 percent increase in gas priceswithin the country, with the aim of generating 435 billion rupees inrevenue through this adjustment. Despite efforts to negotiate, the IMF hasshown limited flexibility regarding this demand for higher gas tariffs,according to insiders.
To mitigate the impact on small consumers, the government has formulated astrategy to exempt them from the price hike, potentially saving 64 percentof gas consumers from increased rates. An official notification regardingthe anticipated 45 percent gas rate hike is expected to be released by thegovernment soon, with the new tariff to be applied retroactively from July1st, as per sources.
Consumers will be required to clear any outstanding arrears in their billsfrom July to September, and this tariff increase will also affect domesticconsumers with higher gas consumption.
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The impending gas rate hike is projected to affect various sectorsdifferently. Commercial consumers, including bakeries and hotels, arelikely to see an increase in gas costs. Industrial consumers, such as CNGstations, fertilizer factories, and the steel industry, will alsoexperience higher gas rates.
Furthermore, the IMF has requested an increase in gas tariffs ranging from45 to 50 percent under the category of ‘Fuel Adjustment Charges,’ effectivefrom July 1st, while urging efforts to crack down on electricity and gastheft to enhance revenue recovery.
