Islamabad – Pakistan’s Economic Coordination Committee (ECC) has approved another steep increase in gas prices of up to 35% to meet IMF loan conditions.
The ECC approved the Petroleum Division’s plan on Wednesday to raise gas rates by 35.13% on average for Punjab, KP and Islamabad consumers.
Sindh and Balochistan consumers will see a 8.57% average hike under the proposals sanctioned a day before the IMF deadline.
The ECC accepted a Rs. 435.14 per MMBTU increase in Sui Northern Gas Pipelines Limited’s rates to Rs. 1673.82 per MMBTU, sources said.
Sui Southern Gas Company’s rates will rise Rs. 115.72 per MMBTU to Rs. 1466.40 per MMBTU as proposed.
Domestic protected consumers will see pricing slabs raised Rs. 80-100 per MMBTU, while vulnerable consumers will get Rs. 200-300/MMBTU hikes, the Petroleum Ministry suggested.
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Rates for commercial roti tandoor gas will increase from Rs. 2,000/MMBTU to Rs. 2,900/MMBTU under a fixed tariff of Rs. 700/MMBTU for this category unchanged since 2015.
Feed and fuel gas prices will jump to Rs. 760 and Rs. 1,750 per MMBtu for fertilizer plants. The new rate for Engro starts March 1st.
The CNG sector will move from Rs. 3600 to Rs. 3750/MMBTU in line with RLNG pricing.
The ECC said aligned revenue needs of gas firms should determine the revised tariffs.
The exorbitant hike continues reforms under Pakistan’s IMF programme despite public hardship. More raises are expected.
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