Gas Prices likely to register another increase in Pakistan

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Gas Prices likely to register another increase in Pakistan

ISLAMABAD - The Economic Coordination Committee (ECC) of the federal cabinet is going to meet today and is expected to raise gas tariffs by 5% to 15% for different consumers.

According to reports, the Oil and Gas Regulatory Authority (OGRA) had proposed a 245% increase in gas tariffs link. However, the petroleum division rejected the proposal and suggested a 15% increase in prices.

The latest hike in gas prices has been proposed at a time when the review team of the International Monetary Fund (IMF) is in Islamabad to evaluate the government’s compliance with the conditions of the $6 billion bailout package.

Moreover, the IMF was expecting the latest hike in gas prices to be enacted from 1st January. However, the federal government shelved the proposal twice fearing public and political outrage.

Considering the plight of the already troubled public, Prime Minister Imran Khan has directed the petroleum division to burden domestic consumers as little as possible.

In line with the directions of PM Imran, the petroleum division has suggested a 5% increase in gas prices for domestic consumers. It has also suggested increasing meter rent from Rs. 20 to Rs. 80 for domestic users. As a result, domestic users and small business enterprises consuming up to 40 to 50 units monthly will see their bills go up by Rs. 220.

The petroleum division has suggested a 12% increase in gas tariffs for the power sector. It has also proposed a 15% hike for industrial captive power plants and the CNG sector. For the fertilizer sector, there will be no increase in gas prices this time.

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