Gas Prices in Pakistan register huge increase by government
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The caretaker government is reportedly set to announce an increase in gas prices, responding to a request from the International Monetary Fund (IMF). This decision comes after the previous PDM government had postponed a gas price hike.
The IMF has insisted on a substantial 45 percent increase in gas prices within the country, with the aim of generating 435 billion rupees in revenue through this adjustment. Despite efforts to negotiate, the IMF has shown limited flexibility regarding this demand for higher gas tariffs, according to insiders.
To mitigate the impact on small consumers, the government has formulated a strategy to exempt them from the price hike, potentially saving 64 percent of gas consumers from increased rates. An official notification regarding the anticipated 45 percent gas rate hike is expected to be released by the government soon, with the new tariff to be applied retroactively from July 1st, as per sources.
Consumers will be required to clear any outstanding arrears in their bills from July to September, and this tariff increase will also affect domestic consumers with higher gas consumption.
The impending gas rate hike is projected to affect various sectors differently. Commercial consumers, including bakeries and hotels, are likely to see an increase in gas costs. Industrial consumers, such as CNG stations, fertilizer factories, and the steel industry, will also experience higher gas rates.
Furthermore, the IMF has requested an increase in gas tariffs ranging from 45 to 50 percent under the category of 'Fuel Adjustment Charges,' effective from July 1st, while urging efforts to crack down on electricity and gas theft to enhance revenue recovery.
