The gas tariff in the country is set to go up to 100% for different consumer categories in line with the conditions of the International Monetary Fund (IMF) to control the mounting circular debt, which will put further burden on the masses.
According to the details, the new summary for gas tariff has been finalized and submitted to the Economic Coordination Committee (ECC) for approval. If the ECC approves the summary, it will be sent to the Federal Cabinet for approval and new rates will be made applicable from October 1.
It is pertinent to mention that gas industry’s circular debt has reached Rs. 2,700 billion and two major gas companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) are taking steps to rectify the problem as per IMF demands.
Under the plan, the gas tariff is likely to be hiked by 100% for domestic consumers, while consumers from other categories might face a proposed hike of 198% in gas charges. Apart from hike in rates, SNGPL and SSGC are looking into other options to get additional revenue.
This includes increasing the fixed gas meter rent from Rs. 460 to Rs. 2,000 per month, which is going to help collect an additional revenue of Rs. 697 billion out of which Rs. 657 billion will be put towards procurement of gas.
Read more: Govt to Raise Fixed Gas Meter Rent to Rs 2,000 Per Month.
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