On Thursday, the federal cabinet approved a 67% increase in natural gas tariffs starting February 1, to fulfil the year’s revenue goals for gas utilities. This decision, endorsed by the caretaker Prime Minister Anwaarul Haq Kakar during a cabinet meeting, adhered to the Economic Coordination Committee’s recommendations. Following this, the Petroleum Division announced the new gas prices, aligning with an IMF deadline for notification before February 15.
The revised tariffs introduce a 66% to 67% hike for consumers using up to 0.5 hundred cubic meters (cm), with rates now ranging from Rs 200 to Rs 250 per MMBtu. For higher usage brackets up to 0.9hcm, increases vary from 29% to 33%, setting new rates between Rs300 and Rs350 per MMBtu.
Significant hikes also affect the non-protected category, with rates for consumption up to 1hcm increasing by 25% to 67%, leading to tariffs from Rs500 to Rs1250 per MMBtu. The highest usage categories see up to a 19% rate increase.
Exceptionally, Engro and Fauji Fertilizers in Karachi face a 715% tariff surge. However, sectors like ‘Roti Tandoor’ and general industries will not see tariff increases.
Additionally, the cabinet greenlit the extradition of dual national Irfan Qadir Bhatti to Norway on terrorism charges. It made several appointments and policy exemptions, including the transit of UNDP vehicle parts to Afghanistan and broadcasting rights payments for sports events.
