ISLAMABAD: Another bad news for the nation is that the caretaker federal government has approved the increase in gas prices in Pakistan, which will be valid from November 1st of this year, said the caretaker Ministry of Energy. The unjustifiable increase in gas prices was done as per the summary of the Oil & Gas Regulatory Authority (OGRA), the ministry added.
The caretaker cabinet on October 23 had approved the summary for the increase in gas prices in Pakistan, it explained. The Federal Cabinet sent the summary back to the Economic Coordination Committee (ECC), said the ministry.
The cabinet on October 23 approved the summary for the increase in gas prices in Pakistan, it explained. The Federal Cabinet sent the summary back to the ECC, said the ministry.
The Economic Coordination Committee re-approved the gas prices In a meeting, it was said that adding gas capital to Pakistan is decreasing by 5% to 10% annually, as the ministry perceived.
Adding imported gas is increasing the financial burden on the national exchequer, said the Ministry of Energy. Adding depreciation to the rupee has increased expenditure on exploration, production, and distribution of gas.
Persistent debt reaches 2.1 trillion due to a non-increase in gas prices in Pakistan, explained the ministry. The ECC decided to drop gas bombs on the public as the summary of the price increase was sanctioned.
As per details, a meeting of the Economic Coordination Committee was held under the chairmanship of caretaker Finance Minister Shamshad Akhtar, in which the ECC approved the summary of the increase in gas prices in Pakistan.
Sources said that the surge has put an extra burden of Rs: 395 billion on gas consumers, while a growth of almost 200% in the gas tariff has been approved. It has been decided to raise the price of gas by up to 172% for home consumers. For several other categories, gas has been approved to be hiked up to around 200%.
Further, the said fixed monthly charges for the endangered consumers will be increased from Rs:10 to Rs:400, while the tariff for the import industry is likely to be jacked up to Rs:2050 from Rs:950. The gas price for CNG is planned to surge by Rs:2595 rupees per MMBTU.