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Business Economy Pakistan Trending Now

Govt. Decides Against Reducing Gas Prices, Plans to Increase from July 1

Islamabad: The federal government has decided against a reduction in gas tariffs starting July 1, despite a 10% price cut announced by the Oil and Gas Regulatory Authority (Ogra) for the upcoming fiscal year.

According to a report, instead, the government has decided, in line with IMF directives, to increase gas prices for Captive Power Plants (CPPs) by Rs. 250 per MMBTU, raising the current price from Rs. 2750 to Rs. 3000 per MMBTU from July 1, 2024, with an additional increase of Rs. 700 per MMBTU to be implemented from January 1, 2025.

The report, citing officials from the Ministry of Energy, mentioned that the government has decided to maintain gas prices at the current level for all categories other than CPPs. By doing so, the government expects to generate an additional revenue of Rs. 110-115 billion after meeting the required revenue needs for the next fiscal year.

This surplus will be used to address the growing circular debt, which has surged to Rs. 2,900 billion, with losses amounting to Rs. 1,500 billion in the previous year.

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