Gas Prices Increased by 143% for High Usage Consumers, LPG Prices Reduced

Amidst speculations of a 186% rise in gas tariff, the Economic Coordination Committee (ECC) has okayed a 143% rise in gas tariff with low-volume consumers (50 cubic meters) getting the least hike of 10%.

The decision was taken at the ECC meeting chaired by the Federal Finance Minister Asad Umar, on Monday.

The rise in gas tariff has been smoothly divided among the different sectors such as CNG, Cement, Commercial Industry, Power and Fertilizer, relieving the residential consumers.

The Oil and Gas Regulatory Authority (OGRA) had earlier proposed an average increase of 46%, however, the petroleum division gave a green signal for a 35% overall increase. The general sales tax would mean Rs 16 billion in revenue for the federal government while the gas companies would get Rs 95 billion.

While announcing the decision, the Petroleum Minister Ghulam Sarwar Khan told the media that the previous government had left the Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) a deficit of Rs 152 billion despite the fact that the two companies were operating in profit in 2013.

Updated Slabs and their Rates

There are now a total of 7 slabs, up from 3, for the consumers to reduce the burden on the residential consumers.

Slab Number of Consumers Tariff Increase % New Price / Old Price (per mmbtu) New Bill / Old Bill
Up to 50 m3 3,561,545 10 Rs 121 / Rs 110 Rs 272 /Rs 252
Up to 100 m3 2,637,863 15 Rs 127 / Rs 110 Rs 551 / Rs 480
Up to 200 m3 1,740,614 20 Rs 264 / Rs 220 Rs 2,216 / Rs 1,851
Up to 300 m3 436,248 25 Rs 275 / Rs 220 Rs 3,449 / Rs 2,764
Up to 400 m3 524,391 30  Rs 780 / Rs 600 Rs 12,980 / Rs 9,900
Up to 500 m3 226,129 143 Rs 1,460 / Rs 600 Rs 30,339 / Rs 12,482
Above 600 m3 237,078 143 Rs 1,460 / Rs 600 Rs 36,402 / Rs 14,973


There’s barely any impact on the bills of the common household users, however, those who used residential connections for commercial purposes will now be subjected to a huge increase in bills.

The Petroleum Minister told that the GST on Liquefied Petroleum Gas (LPG) has been reduced from 17% to 10% owing to the fact that 60% of the population uses LPG instead of the natural gas which is used by only 23% of the population. The price of an 11kg cylinder would now be Rs 1,400 down from Rs 1,600.

The proposed rates will be presented before the Federal Cabinet and upon approval, OGRA will release an official notification. The next month’s bills will be as per the revised prices.

  • So the u-turn saga continues and the price bombs will be dropped in a sequential manner. Those who say that this will not affect the common man are morons and expect everyone to believe this crap. When the high end users will pay more, this will be passed onto everyone by increased price of the product. Tabdeeli a gai ha !!!

  • 2 heaters running for 8 hrs, 1 gyser running for 12 hrs & a stove will cross the 500 m3 consumption during winters, thus putting a lower middle class household in the max category

  • 2 heaters running for 8 hrs, 1 gyser running for 12 hrs & a stove will cross the 500 m3 consumption during winters, thus putting a lower middle class household in the max category

    • You are just focusing on the words “High End Users” and think we dont fall in this category. You will be buying a lot of stuff from the “High End Users” and will ultimately pay the price for this, example,, gas used for bleaching & dieing of fabrics, ceramics, cement industry, steel forging, etc etc,,,,

      • Why do you buy stuff from High-end users?
        You seem to have confused residential rates with industry rates. These are just residential rates and those who use gas for electricity generation need to be penalized for wasting this cheap resource.

          • Nope. There is a separate tariff for commercial users, just like electricity.
            Consumers mentioned here are high-end residential users. These are usually people who use residential connections for commercial purposes or people who waste the resource due to other reasons (excess usage, electricity generators etc).

  • People voted PTI due to worsening situations of Pakistani politics and no other options were available for them. Now there is no any option with the PTI to increase the rates of utilities and taxes to cope with the crippled economy. Due to increase in utilities bills and taxes ultimately the impact of these increase will come to all necessities for common people. Now PTI Government and their leaders especially P.M. and F.M. is not having any other option to beg some relief loan from Saudi Arabia and China. They are having one more option to get bail out package from IMF for which their body language is showing will definitely go for the same. Now common people would be mostly affected by this supplementary budget.

    Now there is good avenue opens for oppositions to give tough time to the PTI Government in this hot issue. I fail to understand that why oppositions have given them free hand rather than to create do or die situations for PTI. If we think that the power transition in Pakistan peacefully carried out due to healthy environment of democracy in Pakistan it means people at dangerous cross roads. Anyhow, I read a management book written by british author who wrote “THERE IS A BIG DIFFERENCE IN BETWEEN TO SAY A JOB AND TO DO A JOB”. At another side of picture PTI leaders were having lusts for power. Before came into power PTI leaders were giving impression to the masses due to alarming rates of corruption in Pakistan people in power were passing their lavish lives. Agreed

    We realize PTI Government is in enormous problems to cope with all worst situations in the country. In a democracy P.M. is Chief Executive and on driving seat. If a driver does not know how to drive then all passengers may meet with fatal accident. Till now they are totally failure to run the government and so many bad decisions were noted by the media, oppositions and masses.

    Why is the PTI behaving like a child who has just stolen his father’s car-keys and is trying to make sense of the gear stick and pedals.

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