The government increased price of natural gas by more than double on Monday to revive International Monetary Fund (IMF) Program. The 113% increase in price is done to recover Rs 310 billion from consumers in the next six months. After the recent hike, consumers are now burdened with Rs 736 billion in the name of taxes and energy cost.
The Pakistani government is facing a tough time as IMF has come up with strict conditions to grant loan this time. In order to fulfill the demands, government is implementing one after another condition. However, the huge size of cabinet has not been reduced yet.
The Economic Coordination Committee of Cabinet approved 113% increased prices for domestic consumers with four cubic meter or more gas consumption.
The price increase for domestic consumers is between 8.5% to 113% besides “optimising” slab benefits previously.
According to the details, the gas prices for the commercial, bulk, fertilizer plants, power producers, cement, exporters, general industry and CNG stations are increased from 10.4% to 105%.
The objective of the recent increase is to stop both the gas supplying companies from bankruptcy. Both the companies have sustained Rs577 billion revenue shortfall since 2013.
According to the Ministry of Finance.“The ECC after a detailed discussion approved a gas price revision proposal for domestic, commercial and power sectors for six months – January to June 2023.”
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