Gas price increased by 10 to 20 percent for consumers using 50 to 200 cm gas: Ghulam Sarwar

Gas price increased by 10 to 20 percent for consumers using 50 to 200 cm gas: Ghulam Sarwar

ISLAMABAD: Minister for Petroleum Ghulam Sarwar Khan Monday said gas prices had be increased by 10 to 20 percent for majority of the consumers using 50-200 cubic meter of gas per month, having an impact of less than hundred to few hundred rupees on most of the low income people.

Talking to media along with Minister for Information and Broadcasting Chaudhry Fawad Hussain here outside the Parliament House, he said Economic Coordination Committee (ECC) of the Cabinet had approved increase in gas prices and decided to create seven slabs instead of the present three slabs to spread the cost.

He said when the government of Pakistan Muslim League - N was formed in 2013, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) were in profit but both of them were in deficit of Rs152 billion when the government left.

The minister said the 23 percent consumers used the gas network system and 60 percent consumers used Liquefied Petroleum Gas (LPG) while remaining 17 percent used Kerosene, firewood and cow dung.

He said bill of the 38 percent of the people who were using 50 cubic meter gas per month, would increase from Rs252 to Rs275. Bill of the 28 percent of the people who were consuming 100 cubic meter of the gas, would rise from Rs480 to Rs550. Bill of the 19 percent of the consumers who use 200 cubic meter of the gas, would hike from Rs1,851 to Rs 2214. The new prices would come into effect from October.

The price hike for consumers who use upto 300 cubic meters of gas every month would be 25 percent, while consumers who use upto 400 cubic meters of gas would get a 30 percent increase in their bills.

The minister said the price of LPG cylinder was Rs1,600 and the government would abolish taxes and impose only 10 percent GST to reduce the price of LPG cylinder to Rs1,400.

The gas prices for export sector and zero rated industry including manufacturers of jute, leather, sports goods, textile, carpet, surgical instruments and others would not be increased.

The subsidized LNG worth billions of rupees would be provided to the export oriented industry so that it could remain competitive and millions of people who lost jobs would get back employment in the textile sector, he informed.

Ghulam Sarwar said prices of Compressed Natural Gas (CNG) were higher in Punjab as compared to prices in Sindh and Khyber Pakhtunkhwa so prices in these two provinces would be raised to bring parity.

He assured that hike in gas prices would not be passed on by the electricity companies to the consumers.