The Petroleum Ministry has put together a plan for up to a 60 percent increase in gas prices to curb the sector’s revolving debt on the direction of the International Monetary Fund (IMF).
Following the federal cabinet’s green light on the proposal and after relevant engagement with the provincial authorities, the new rates will be notified and implemented accordingly, local media reported earlier today.
A new gas rate will be set for the entire country based on the weighted average cost of gas. Regardless of where an individual lives, all consumers will pay the same.
The current price of domestic petrol is $8 per MMBtu, while imported LNG is $13 per MMBtu. The Petroleum Ministry intends to close the $5 difference between these two grades through the swift implementation of its latest proposal to hike gas prices for every consumer. This will help to lower the gas sector’s revolving debt.
The new plan is expected to address LNG consumption for manufacturing of fertilizers. Currently, producers get LNG at discounted rates, which has so far continued to widen the revolving debt. After the implementation of the new plan, manufacturers would be required to pay the full market price for LNG.
The coming few months will most likely see the Petroleum Ministry’s new plan in action. Consequently, it will have a big impact on consumers across the board.
This development comes after analyst expectations that the IMF would raise questions over the federal government’s decision to delay notifying the increase in gas tariff determined by the Oil and Gas Regulatory Authority back in June.
Despite public outcry for relief on energy bills, the government has no better choice but to raise the gas rate by over 50 percent. The aforesaid plan could offer an urgent cover to the caretaker setup as it struggles to manage the economy, with the revolving debt of the country being at the forefront of its priorities.
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Finally the right thing gas prices need to increase by 100% we need to control debt
Khotaye keah bachaye Smuggling karta hai na tuuuu
It appears that you are a Sui gas company employee who gets free gas, otherwise you would not have made this remark.
Caretaker Government hum per nafiz kerdi gayi hai taaki aise decisions liye jaa sake and civil unrest ho jisme saari political parties shamil hongi and elections1-2 saal ke liye multavi hoo jaaye……
In our country, all the thieves have been sons, the biggest thief Zardari is on the number 1, PPP is on the second number, the PM, who is our prime minister, who is the biggest thief himself. Chorege Hare, who is behind us, Bangladesh has gone ahead of us.
Iran is agreed to give us Cheap fuel Gass & Electricity approximately 5 rupees per unit….but we are a slave nation
Our Master Mr SAM will decide what we have to do…. unfortunately we are not nation,we are M…….f….rs
Please prepare a comprehensive list of all possible increases expected to fall upon the poor people in coming days so that we have one shock and not a separate shock everyday.
What else can you expect from corrupt rulers, inefficient bureaucracy, ‘muft khoraas’ and the like?