Another inflation shock to consumers, Gas prices likely to be doubled
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The interim federal government in Islamabad is reportedly considering a significant increase in gas tariffs, potentially up to 200%, as well as raising fixed charges for protected consumers, as per ARY News reports on Wednesday.
This move by the interim government aims to impose additional financial burdens on gas consumers. According to sources, recommendations have been put forward to the government to raise the fixed charges for protected consumers.
The proposed increase suggests raising the fixed charges from Rs10 to Rs400 for protected consumers, resulting in an overall suggested hike of 200%. This includes a 172% increase for domestic consumers and a 198.33% increase for 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 the caretaker 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 to generate 435 billion rupees in revenue. It appears that the IMF has been inflexible in its demand for higher gas tariffs.
In an attempt to shield small gas consumers from the rate hike, the government has devised a strategy to exclude them from increases.
Sources suggest that the caretaker government will exempt 64% of gas consumers from the price hike. It is anticipated that the government will formally announce a 45% increase in gas rates through an official notification soon, with the gas tariff increase being retroactive to July 1st, according to sources.
