Upto 200% increase in domestic gas prices proposed

Upto 200% increase in domestic gas prices proposed

ISLAMABAD – The domestic consumers are likely to face another increase in gas prices, that too to the tune of 200 percent as the Economic Coordination Committee would be brainstorming the recommendation today.

The Petroleum Division has proposed 25% increase in gas prices for domestic gas consumer in the first slab. Fifty per cent (50%) increase is recommended for the second slab, 75% for the third slab, 100% for the fourth slab, 150% for the fifth slab and 200% for the sixth slab gas consumers, however, no increase in gas prices has been recommended for the elite who use gas in bulk.

If Hafeez Sheikh-led ECC gives approval of recommendations, the bill for consumers falling in the first slab will go up from existing Rs285 to Rs422 per month while the bill for slab-two consumers will go up from Rs572 to Rs1,219; bill for slab-three from Rs2,305 to Rs4,009; bill for slab-four from Rs3,589 to Rs7,995 and bill for slab-five from Rs13,508 to Rs14,373 per month, Express Tribune reported.

The main reason for increase in gas prices is said to be depreciation of rupee against US Dollar as Ogra had set Rs150 per US dollar exchange rate to determine prices of gas for consumers in the next financial year.

Though the Petroleum Division has suggested slab-wise recommendation, the Oil and Gas Regulatory Authority (Ogra) had recommend 31% and 20% across the board increase respectively in gas prices for all categories of the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) consumers.