Another price increase for Pakistanis, this time in the form of higher gas prices. The Cabinet’s Economic Coordination Committee (ECC) has approved an increase in gas prices for the domestic, commercial, and industrial sectors. Domestic consumer rates have risen by 43 to 335 percent.
This price increase has shocked people and is causing them great concern. The decision was made at the ECC meeting in Islamabad on Thursday, which was presided over by Finance Minister Miftah Ismail.
The price increase in fuel was insufficient for the people of Pakistan, as another massive price increase occurred, with the main reason given being to recover Rs660 billion.
The government has approved a 43 percent to 235 percent increase in gas prices beginning July 1 in order to recoup Rs660 billion from the majority of domestic and all other consumer groups. Domestic consumer interest rates have increased by 43 to 335 percent.
The rate for above 400 cubic meters was currently charged at Rs1,460 per unit, but would now face a 154 percent increase to Rs3,712 per unit, according to a summary.
Furthermore, the ECC approved the issuance of a GOP sovereign guarantee in the amount of 10 billion rupees for the construction of two units of 660 MW Super Coal Power Projects, according to a Power Division summary.
The price of gas for the export-oriented industry was also raised, from $6.5 per MMBTU to $9/MMBTU. The ECC reduced general industry prices by Rs100 per MMBTU, from Rs1,450 to Rs1,350 per MMBTU, and captive power prices by Rs100 per MMBTU, from Rs1,650 to Rs1,550 per MMBTU. According to the official summary presented to the ECC, the structure of seven slabs is being revised into five slabs by consolidating the last two existing slabs; the slab up to 0.4 hm3 is proposed to be merged with the slab up to 0.5 hm3, and the rate for the merged slab is proposed to be Rs173/MMBTU. In the domestic category, there will be no minimum charge.
It is proposed to consolidate the slabs in the category of consumers for tandoor/roti because 95 percent of consumers fall in the last slab of the existing structure. There will be only one slab, with the rate for all tandoors equal to the Average Prescribed Price (Rs928/MMBTU).