gas tariff increase plan in the works under imf agreement
The government is thinking about raising the prices of gas and this might affect many people and industries. This plan is part of an agreement with the International Monetary Fund (IMF) and it’s happening as the IMF is doing a review of Pakistan’s financial situation.
What we need to know is..
The new gas prices won’t start from July 1, 2023, as previously planned. They will start when the government approves them.
Impact on Residential Users
Even residential customers might see an increase in their gas bills, especially those in the first four usage slabs. Their monthly bills could go up by around Rs300 to less than Rs500 per MMBtu.
Changes for Fertilizer Industry
The government is considering ending special treatment for the fertilizer sector. Gas prices for this sector could increase up to Rs1,500 per MMBtu. This change would affect all fertilizer companies.
Export Industry and General Industry
For the export industry, gas prices could go up to Rs1,800 per MMBtu from Rs1,100. General industry might see an increase of Rs2,500 per MMBtu from Rs1,200.
Commercial and CNG Sectors
Commercial Consumers might face an Increase to Rs3,000 per MMBtu from Rs1,650. The CNG industry’s gas tariff could rise from Rs1,805 per MMBtu to Rs4,000.
The cement industry might also experience an increase in gas prices, potentially going up to Rs4,000 per MMBtu from Rs1,500.
Most domestic consumers will have to pay more for Gas. Especially those using larger amounts of gas. Some high-end consumers could see their bills increase significantly.
LPG Cylinder Connection
Gas prices are connected to the price of an 11.1 kg LPG cylinder. So, if LPG prices rise.
Read More: IMF’s $3 Billion Bailout Program for Pakistan
Import vs. Selling Price
The government is importing gas at a higher cost than what they are selling it for. This situation isn’t sustainable, so they are considering raising prices.
So rising prices may affect people and industries.