The Government of Pakistan is set to raise gas prices for domestic consumers for the fourth time in two years, according to ARY News.
As per reports, the Oil & Gas Regulatory Authority (OGRA) will conduct a hearing tomorrow in Lahore regarding an application from Sui Northern Gas Pipelines Limited (SNGPL), while a hearing for Sui Southern Gas Company Limited (SSGC) is scheduled for November 8 in Karachi.
It is suggested that a price increase of 3.66% has been requested for Punjab, Khyber Pakhtunkhwa, and Islamabad, while Sindh and Balochistan have seen a proposed increase of 53.47%. SNGPL has sought a hike of Rs. 64.16 per MMBtu, raising its average price to Rs. 1,810.38 per MMBtu. Meanwhile, SSGC has requested an increase of Rs. 669.07 per MMBtu, pushing its average price to Rs. 1,920.39 per MMBtu.
The gas companies have proposed that these increases take effect from July 1, 2024. Domestic consumers have already endured an additional burden of Rs. 953 billion due to escalating gas prices.
Since January 2023, gas prices for domestic users have risen three times: once under the previous coalition government and twice during the brief tenure of the caretaker government. In total, gas consumers have faced an extra burden of over Rs. 900 billion in the past two years.
Earlier this year, discussions took place between Pakistan and the International Monetary Fund (IMF) regarding the budget measures aimed at meeting IMF conditions, which were later acknowledged as tough but necessary economic decisions, particularly concerning the increase in gas prices.
The IMF has pushed for further hikes in electricity and gas rates starting July 1 and urged immediate implementation of NEPRA’s decisions on gas and power tariffs. Additionally, the IMF has called for the elimination of tax exemptions and subsidies, deeming them critical for the country’s economic recovery.
