Minister of Power and Petroleum Omar Ayub Khan has announced an increase in gas prices by up to 168.36 percent and electricity prices by Rs. 1.5 per unit.
Gas tariff for the first slab will not be increased, at Rs. 285 per million British thermal units (mmbtu). For the second slab, the price hike is 136.2 percent, 101.89 percent for the third, 168.36 percent for the fourth, and 41.92 percent for the fifth slab.
The bill for second-slab consumers will increase from Rs. 572 to Rs. 933 per unit, from Rs. 2,305 to Rs. 3,712 for third slab consumers, Rs. 3,589 to Rs. 7,995 for the fourth slab, and for the fifth slab it will increase from Rs. 13,508 to Rs. 14,373.
The tariff for bulk consumers and for the sixth slab is set at Rs. 780 per mmbtu and Rs. 1,460 per mmbtu respectively.
A notification was also issued to the industrial sector for the new gas prices. The price of gas used for feedstock by old fertilizer plants has increased by 62 percent.
Moreover, prices have been increased by 31 percent for gas used as fuel by fertilizer, cement, power, and captive power plants, zero-rated industry, general industry, CNG stations, and commercial consumers.
There has been no price increase for the newer fertilizer plants.
At a press conference, the power minister said that ‘the revision of gas prices is inevitable’, as the present tariff can only generate a revenue of Rs. 397 billion causing a shortfall of Rs. 144 billion.
He said that 45 percent of domestic consumers (low usage), who are paying Rs. 121 per mmbtu, will not face any price increase. Their tariff has been fixed at only 16 percent of the supply cost.
As for the hike in electricity prices, the minister said that there will be no increase in the rates for the consumers using 300 units of electricity in a month. The rest of the consumers will have to pay Rs. 1.5 more per unit.