100pc increase in gas prices on the cards

ISLAMABAD: On the one hand, the public might have gotten some breathing space after the recent big dip in petrol prices but on the other hand, the government is preparing to enact a substantial 100 percent increase in gas rates to comply with the IMF’s conditions.

Multiple reports suggest that the Economic Coordination Committee is mulling a proposal that, if approved, would result in doubling the current gas prices in Pakistan.

The prosal suggests the increased tarrif to effectively reflect on the bills, in back date, from October 1.

It includes a significant adjustment in fixed monthly charges for protected gas consumers, raising them from Rs10 per month to Rs400 per month.

Caretaker government plans to hike gas prices ahead of winter

Sources say that while domestic consumers may face a 100 per cent increase in gas charges, for commercial consumers it could increase by almost 200 per cent – a threefold increment.

These proposed hikes are part of the caretaker government’s strategy to address the circular debt issue and meet its commitments to the IMF.

According to sources within the finance ministry, failure to adjust gas prices could result in a potential shortfall of Rs185 billion. Furthermore, neglecting to increase  Re-gasified Liquefied Natural Gas (RLNG) prices for domestic consumers might lead to a deficit of Rs21 billion.

Insiders suggest that by the end of the current financial year, there is a strong likelihood that the gas sector’s revolving debt could increase by Rs46 billion.

With winters almost here, it seems the common person’s woes will increase if the governemnt approves the proposal, especially considering the recent hike in LPG gas prices too.