Natural Gas Prices to Surge with Up to 100% Increase in Tariffs

The inflation rates for the past few years are already sky-high. The caretaker government has announced yet another bad news for the citizens of Pakistan. The electricity bills have already been breaking the backs of the poor and downtrodden and now the government has announced an increase in gas tariffs. This increase can be up to 100%.

As winters approach the consumption of gas will definitely increase. This has put the general public in a state of shock as they already feel buried under high taxes on electricity units. Now that there will be an increase in gas tariffs, citizens feel overwhelmed because they know the consumption of gas will massively increase. This increase will be as a result of people utilising heaters that run on gas as well as the increase in daily domestic consumption.

The summary of these new tariffs has been sent to ECC for approval. Officials suggest that the reason for this increase is due to the fact that Pakistan’s Gas Circular debt has reached an astonishing Rs 2,700 Billion. Moreover, this policy is in accordance with the IMF to control the increasing circular debt.

Experts suggest that the price will be changed from Rs 2,000 to Rs 3,500 for the usage of 1mmBtu. This is the price rise for a single unit of gas usage. Several sources also suggested the summary will be sent to the federal cabinet after it has been viewed by the ECC. If it is approved by the federal cabinet the new prices will be set from 0ctober 1, 2023.

Sources also suggest that if the prices are not increased, it could be fatal for Pakistan as the circular debt could have an increase of Rs 46 Billion. The proposal contains an increase rate of 100% for domestic users and a rise of 198.33% is expected for other consumers.

Moreover, authorities know that this will inevitably increase the inflation in Pakistan which is already at its peak but this is one of the key conditions of the IMF and it cannot be ignored. There is no alternative to this. Check the new tax reforms by The World Bank here “World Bank Suggests Taxing Pakistan’s Agriculture and Real Estate.”