The Economic Coordination Committee (ECC) of the Cabinet approved an increase of up to 124% in gas prices across the board for six months to implement a major condition imposed by the International Monetary Fund (IMF) as a prerequisite for reaching a staff-level agreement with Pakistan.
In compliance with the Review of the Estimated Revenue Requirement (RERR) for the fiscal year 2022-23, the Ministry of Energy (Petroleum Division) has submitted tariff suggestions for all consumer categories.
“After a thorough debate, the ECC approved the gas price revision proposal for the household, commercial, and power sectors for six months [January to June 2023],” stated the announcement.
Reforms in the energy sector and control of circular debt remained at the top of the agenda during the IMF mission’s ten-day negotiations that finished in Islamabad on Thursday.
The IMF team departed Islamabad without striking a deal and urged Pakistan to take corrective action.
The pricing for homes consuming up to 100 cubic meters of gas has increased by 16.6% to Rs350 per MMBTU, a rise of Rs50 per MMBTU. The price per million British thermal units has increased by 32% for household consumers who consume 200 cubic meters per year.
Consumers who utilize up to 300 cubic meters of gas will now pay Rs1,250 per MMBTU, a 69% increase from the previous rate. In addition, the pricing has increased by 99 percent to Rs2,200 per MMBTU for residential clients who use up to 400 cubic meters of gas each year.
For houses consuming more than 400 cubic meters of gas, the price per MMBTU has increased by 124% to Rs3,277.
The gas price for industrial consumers has increased by 28.6%, from Rs 1,283 to Rs 1,650 per MMBTU.
Following a 22.8% increase, the price of gas for the energy industry has risen from Rs857 per MMBTU to Rs1,050 per MMBTU. The rate per MMBTU for the export business has been increased by 34% to Rs1,100, equating to a 34% increase.
Following a 31% increase, the CNG sector will be required to pay Rs1,800 per MMBTU. After a 46% increase, the gas price per MMBTU for the fertilizer industry will be Rs 1,500. Following a 17.46% increase in gas price, the cement industry would pay Rs1,500 per MMBTU.
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