Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Gen V Season 2 trailer
    Videos

    Gen V Season 2 Trailer Cast, Plot, Premiere Details

    July 26, 2025 3 Min Read
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: Pakistan’s Gas Tariff Plan: An Increase Under IMF Scrutiny
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Gas Tariff Increase in Pakistan
PhotoNews Pakistan > Business > Pakistan’s Gas Tariff Plan: An Increase Under IMF Scrutiny
BusinessTop News

Pakistan’s Gas Tariff Plan: An Increase Under IMF Scrutiny

Web Desk
By Web Desk Published October 2, 2023 3 Min Read
Share
Expected Gas Tariff Hike. Photo: Express Tribune
SHARE

The Petroleum Division is nearing the completion of its proposal to hike the gas tariff. This will be presented for approval at the forthcoming Economic Coordination Committee (ECC) meeting. The timing is noteworthy, aligning with the imminent review by the International Monetary Fund (IMF) concerning the $3 billion Stand-by Arrangement (SBA) loan scheduled for October’s end. Once the federal cabinet ratifies the proposal, the energy ministry’s top officials have confirmed that the government will initiate the new gas tariffs from the approval date instead of July 1, 2023.

Key decision-makers within the Petroleum Division are considering including even the protected residential consumers under the new tariff to ensure the circular debt in the gas sector remains unchanged. The said consumers, particularly those within the initial four consumption slabs, might rise between Rs300 and Rs500 per MMBtu.

Furthermore, an overhaul is anticipated for the fertiliser sector. Current subsidies, which allow a rate of Rs510 per MMBtu for feedstock and Rs1,500 per MMBtu for other utilities, are likely to be revised. This decision follows the revelation that companies like Fauji Fertiliser receive gas at even lower rates, leading to substantial losses for suppliers like Marri Gas Company. This financial strain and the escalating circular debt, now totalling Rs2,900 billion, emphasizes the need for tariff restructuring.

Tariff Adjustments for Various Sectors

The proposed adjustments include increased gas prices for both the export and non-export industries. The former could see rates climb from Rs1,100 to Rs1,800 per MMBtu, while the latter might experience a surge from Rs1,200 to Rs2,500 per MMBtu. Commercial consumers, the CNG, and the cement industry will also undergo significant tariff hikes. Captive power plants in the export sector across Punjab and Sindh will undergo uniform treatment, receiving 50% of their gas supply as regasified liquefied natural gas (RLNG) at full cost, maintaining their average price at $9 per MMBtu.

The domestic sector, excluding protected categories, will bear the brunt of these hikes, with consumers in higher slabs facing the steepest increases. This is partly due to the new gas price linkage with the cost of an 11.1 kg liquefied petroleum gas (LPG) cylinder. The government’s decision to import RLNG at Rs3,700 per MMBtu and sell at an average of Rs1,100 per MMBtu is no longer financially tenable. On June 2, 2023, the Oil and Gas Regulatory Authority (Ogra) adjusted tariffs for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited customers by 50% and 45%, respectively. Their cumulative shortfalls have resulted in a combined deficit of Rs657.766 billion.

TAGGED:FeaturedPak­istan
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Google UK investment

Google Pledges £5 Billion for UK Data Centre and Jobs Boost

Elon Musk's Transgender Daughter Vivian Wilson at NYFW 2025

Vivian Wilson’s Bold NYFW 2025 Runway Debut Amid Elon Musk Feud

Kash Patel on Charlie Kir investigation

FBI Director Kash Patel Defends Handling of Charlie Kirk Murder Probe

Post Archives

More Popular from Photonews

Hyundai’s Adrien Fourmaux at Rally Chile 2025
Sports

Hyundai’s Adrien Fourmaux Takes Slim Lead at Rally Chile 2025

2 Min Read
Karachi Tarffic Jam
Sindh

Malir River Flooding Shuts Korangi Crossing, Sparks Karachi Traffic Chaos

2 Min Read
Imaan Mazari CCTV footage
Pakistan

Imaan Mazari Demands CCTV Footage from Islamabad High Court Incident

2 Min Read
World

Festering Corpse Found in Tesla Trunk Linked to Rapper D4vd in 2025

Hollywood authorities discovered a rotting corpse in the front trunk of an impounded Tesla registered to…

September 10, 2025
Sports

Pakistan’s All-Women Team Summits 5,400m Bari La Peak in Historic Climb

On September 10, 2025, Pakistan’s first all-women mountaineering expedition summited the 5,400-meter Bari La Peak in…

September 12, 2025
Sindh

Sindh Govt Bans Vapes and Nicotine Products in School and Colleges

On Friday, September 12, 2025, the Sindh government announced a complete ban on tobacco and nicotine…

September 12, 2025
Tech

OpenAI and Nvidia CEOs to Support UK Data Center Investments

Bloomberg News reported that the CEOs of OpenAI and Nvidia will visit the UK to pledge…

September 13, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?