The government increased gas rates by approximately 9% for industrial captive power units effective July 1, meeting an IMF prerequisite. However, it withheld a potential 15% (Rs133 billion) decrease in average gas rates for other consumers, which could have resulted from lower global oil prices.
This decision emerged from a special Economic Coordination Committee (ECC) meeting led by Finance Minister Muhammad Aurangzeb, aligning with IMF requirements for a three-year loan program.
Recent discussions between the petroleum division and the IMF identified the gas price notification and the gradual removal of captive power plants from the gas grid by January 2025 as key measures.
Despite the Oil and Gas Regulatory Authority (Ogra) proposing a Rs180 per unit gas price reduction to meet the fiscal year 2024-25 requirements, it later suggested reallocating a Rs132 billion cut to address circular debt, thus limiting consumer relief amid rising inflation and new taxes.
Ogra also proposed incorporating past deficits into future revenue calculations, as noted in an ECC summary.
Subsequently, the ECC approved increased gas rates for captive industrial plants to Rs3,000 per million British thermal units (mmBtu), up from Rs2,750.
The gas tariff will remain unchanged for all other consumers until December 31, 2024.
