ISLAMABAD: The PML-N led coalition government gave in to International Monetary Fund (IMF) as it approved a humongous increase of up to 112% in the natural gas prices to recover Rs310 billion from the majority of consumers in six months, putting a minimum of Rs736 billion additional burden on the citizens.
At the time when government is making the masses lives miserable with one after another harsh IMF condition to revive the program, it had not yet shown willingness to reduce the jumbo cabinet size and impose taxes on traders as well as the stock market.
The Economic Coordination Committee of the Cabinet (ECC) made the decision, which transferred the maximum burden of 112% on domestic consumers who had monthly consumption of more than four cubic meters.
The prices for the domestic consumers had been increased in the range of 8.5% to 113% besides “optimizing” the previous slab benefit.
For the bulk, commercial, power producers, fertilizer plants, cement, exporters, general industry and CNG stations, the gas prices had been increased from 10.4% to 105%, the details showed.
The gas rates for domestic consumers of two cubic meters per month had been increased to Rs800 per MMBTU – an increase of Rs247 or 45%.
The consumers of up to three cubic meters of gas would now pay Rs1,100 per MMBTU price, which was higher by Rs362 or 49% over the existing prices. The existing rate for this category was Rs738 per MMBTU.
However, a major burden had been passed on to consumers using above three cubic meters of gas a month. As against the Rs1,107 existing rate, the consumers of up to four cubic meters of gas would pay Rs2,000 per MMBTU –a surge of Rs893 or 81%.
The consumers of above four cubic meters of gas would now pay Rs3,100 as against Rs1,460 – an increase of Rs1,640 or 113%.
The bulk consumers would be charged at the average prescribed price of Rs1,600 per MMBTU –up by Rs820 or 105%.
The government has also increased gas prices for K-Electric, Sindh Noordiabad and Engro Powergen Qadirpur at a rate of 22.5pc to Rs1,050 from Rs1,187 per mmBtu, while an increase of 103.72pc to Rs2,406 from Rs1,181 was made for Liberty Power and 19.65pc to Rs140 from Rs117 per mmBtu was made for Engro Fertilizer Ltd. The gas rate for cement sector was increased by 17.46pc to Rs1,500 from Rs1,023.
On Jan 10, the Oil and Gas Regulatory Authority (Ogra) has already allowed two gas companies — Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) — to hike their prices by 74.42pc and 75.35pc, respectively. However, it was subject to the approval of the ECC.
