The interim federal government in Islamabad is reportedly considering asignificant increase in gas tariffs, potentially up to 200%, as well asraising fixed charges for protected consumers, as per ARY News reports onWednesday.
This move by the interim government aims to impose additional financialburdens on gas consumers. According to sources, recommendations have beenput forward to the government to raise the fixed charges for protectedconsumers.
The proposed increase suggests raising the fixed charges from Rs10 to Rs400for protected consumers, resulting in an overall suggested hike of 200%.This includes a 172% increase for domestic consumers and a 198.33% increasefor other categories.
The suggested gas tariff hike is expected to be effective from October 1,as indicated by sources. Earlier in the month, it was revealed that thecaretaker government is likely to announce an increase in gas prices,responding to the demands of the International Monetary Fund (IMF).
The previous PDM government had postponed the decision to raise gas prices.The IMF has insisted on a 45% increase in gas prices in Pakistan togenerate 435 billion rupees in revenue. It appears that the IMF has beeninflexible in its demand for higher gas tariffs.
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In an attempt to shield small gas consumers from the rate hike, thegovernment has devised a strategy to exclude them from increases.
Sources suggest that the caretaker government will exempt 64% of gasconsumers from the price hike. It is anticipated that the government willformally announce a 45% increase in gas rates through an officialnotification soon, with the gas tariff increase being retroactive to July1st, according to sources.