The IMF demanded an increase in gas prices of up to 112 percent

The government on Monday approved raising the gas tariff in the range of 17 to 112 percent for different categories in order to satisfy another IMF previous condition

The Economic Coordination Committee (ECC) of the cabinet approved gas tariffs on average up to 112 percent for the highest slab users of domestic consumers with effect from January 1, 2023, in order to generate revenues of Rs310 billion for two massive gas utilities, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL). Furthermore, there are now ten slabs instead of five.

In accordance with the ruling that the ECC adopted on Monday, the government designated four categories as “protected” for users of up to 0.25 hm3 to 0.9 hm3 for domestic (residential) customers. One category, up to 0.5 hm3, saw a price increase from Rs121 per MMBTU to Rs150 per MMBTU.

With effect from January 1, 2023, the price of gas for users up to 0.6 hm3 has been decreased from Rs300 per MMBTU to Rs200 per MMBTU, and for users up to 0.9 hm3, the price has been reduced from Rs300 per MMBTU to Rs250 per MMBTU. Gas prices for consumers in Slab 1 remained constant at Rs121 per MMBTU.

There are six slabs in the “Unprotected” category, with prices for users up to 1 hm3 increasing from Rs300 to Rs400 per MMBTU as of January 1, 2023, and for users up to 1.5 hm3 from Rs553 to Rs600 per MMBTU.

Following deliberation, the ECC approved a Technical Supplementary Grant of Rs. 40 billion for BISP to meet its financial needs for an increase in the unconditional and conditional awards.

Written by Aly Bukshi

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