Islamabad: Pakistan’s Petroleum Division is finalizing a proposal to increase gas tariffs, to be presented for approval at an ECC meeting. The move precedes the first IMF review under the $3 billion SBA loan, scheduled for October.
If approved by the federal cabinet, the revised gas prices will not be retroactive to July 1, 2023, but will take effect from the date of cabinet approval.
The plan aims to prevent a rise in the gas sector’s circular debt, impacting even protected residential consumers. It could lead to increases ranging from Rs300 to less than Rs500 per MMBtu for users falling in the first four slabs.
The government also plans to end differential treatment for the fertilizer sector, possibly raising gas tariffs to Rs1,500 per MMBtu for all industry players. Currently, the sector enjoys subsidized rates of Rs510 per MMBtu for feedstock and Rs1,500 per MMBtu for other uses.
Proposed increases also extend to the export industry, non-export industry, commercial consumers, CNG industry, and cement industry, with various price adjustments. For domestic consumers, gas price increases will vary based on usage categories, impacting higher-end consumers significantly.