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Caretaker govt approves massive increase in gas tariff

01:15 AM | 31 Oct, 2023
new gas tariff
Source: File photo

ISLAMABAD – The caretaker government on Monday approved a massive increase in price of natural gas for different categories of consumers.

The gas price has been increased on the advice of the Oil and Gas Regulatory Authority (Ogra) and the new tariff will be effective from November 1.

The Ministry of Petroleum Division has shared details about the price adjustments. It was clarified that gas prices remain unchanged for protected consumers using 25 to 90 cubic meters per month. However, fixed charges for these protected consumers have been raised.

For users consuming 25 cubic meters per month, the gas price has increased from Rs 200 to Rs 300 per mmbtu. Those consuming 60 cubic meters per month will see a price increase from Rs 300 to Rs 600 per mmbtu. Meanwhile, monthly consumption of 100 cubic meters will now cost Rs 1000 per mmbtu, up from Rs 400.

Further adjustments include an increase from Rs 600 to Rs 1200 per mmbtu for those consuming 150 cubic meters per month, and from Rs 800 to Rs 1600 per mmbtu for those using 200 cubic meters. Users consuming 300 cubic meters will now pay Rs 3000 per mmbtu, up from Rs 1100. Monthly consumption exceeding 400 cubic meters will result in a gas price increase from Rs 2000 to Rs 3500 per mmbtu. Those consuming over 400 cubic meters will see an increase from Rs 3100 to Rs 4000 per mmbtu.

The ECC had initially okayed the increase in gas prices on October 23, citing the country’s depleting gas reserves. These reserves are dwindling at a rate of 5 to 10 percent annually, and the government’s financial burden has surged due to the importation of gas. This financial strain has contributed to the accumulation of a recurring debt of Rs 2.1 trillion, stemming from the previous lack of gas price adjustments.

The Federal Cabinet in its meeting held on 30th October 2023 referred back the summary for reconsideration of the ECC.

The Ministry of Energy has noted that even highly profitable businesses are utilizing natural gas at lower rates, making the decision to raise gas prices a challenging one for the caretaker government. It's worth mentioning that the last gas price increase occurred approximately two and a half years ago, resulting in a revenue of 461 billion rupees for the national exchequer.

Initially, the Federal Cabinet had postponed the decision on gas prices during an ECC meeting, directing the ECC to review the matter. However, the Ministry of Petroleum subsequently clarified that, as per the ECC's declaration, gas prices would indeed be raised. This decision is expected to have significant implications for both businesses and consumers alike.

Daily Pakistan Global Web Desk

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Rupee exchange rate to US Dollar, Euro, Pound, Dirham, and Riyal - 28 Feb 2024

Pakistani currency remains momentum against US dollar in the open market on February 28, 2024 (Wednesday).

US Dollar rate in Pakistan

In the open market, the US dollar moves up and currently hovers at 282 for buying and 282.25 for selling.

Euro currently stands at 303.1 for buying and 306.1 for selling while British Pound rate stands at 351.6 for buying, and 355.1 for selling.

UAE Dirham AED hovers at 76.1 whereas the Saudi Riyal saw slight increase, with new rates at 74.25.

Today’s currency exchange rates in Pakistan - 28 Feb 2024

Source: Forex Association of Pakistan. (last update 09:00 AM)
Currency Symbol Buying Selling
US Dollar USD 282 282.25
Euro EUR 303.1 306.1
UK Pound Sterling GBP 351.6 355.1
U.A.E Dirham AED 76.1 76.8
Saudi Riyal SAR 74.25 75.05
Australian Dollar AUD 181.1 183.1
Bahrain Dinar BHD 742.91 750.91
Canadian Dollar CAD 207.1 209.1
China Yuan CNY 38.87 39.27
Danish Krone DKK 40.61 41
Hong Kong Dollar HKD 35.75 36.1
Indian Rupee INR 3.37 3.48
Japanese Yen JPY 2.10 2.18
Kuwaiti Dinar KWD 905.46 914.46
Malaysian Ringgit MYR 58.5 59.1
New Zealand Dollar NZD 173.05 175.05
Norwegians Krone NOK 26.41 26.71
Omani Riyal OMR 725.54 733.54
Qatari Riyal QAR 76.74 77.44
Singapore Dollar SGD 207.15 209.15
Swedish Korona SEK 27.04 27.34
Swiss Franc CHF 317 319.5
Thai Bhat THB 7.76 7.91

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