Another Price hike for the people of Pakistan and this time it is in Gas Prices. The Economic Coordination Committee of the Cabinet (ECC) has approved a hike in gas prices for domestic, commercial, and industrial sectors. The rates for domestic consumers have gone up by 43 to 335pc.
This increase in Price has taken people by Shock and is another big worry for them. The decision was made at the ECC meeting on Thursday in Islamabad, which was headed by Finance Minister Miftah Ismail.
The price hike in Fuel wasn’t enough for the people of Pakistan as another price hike occurred which is a massive one in terms of Prices and the main reason given is to recover Rs660 billion.
The government approved a 43 percent to 235 percent increase in gas prices beginning July 1 in order to recover Rs660 billion from the majority of domestic and all other categories of consumers. Domestic consumer rates have risen by 43 to 335 percent.
According to a summary, the rate for above 400 cubic meters was currently charged at Rs1,460 per unit, but would now face a 154 percent increase to Rs3,712 per unit.
Furthermore, based on a Power Division summary, the ECC approved the issuance of a GOP sovereign guarantee in the amount of 10 billion rupees for the construction of two units of 660 MW Super Coal Power Projects.
The gas price for the export-oriented industry was also increased, going up from $6.5 per MMBTU to $9/MMBTU. The ECC reduced Rs100 per MMBTU prices for the general industry from Rs1,450 to Rs1,350 per MMBTU and captive power from Rs1,650 per MMBTU to Rs1,550 per MMBTU. The official summary presented before the ECC proposed that the structure of seven slabs was being revised into five slabs by consolidating the last two existing slabs; the slab up to 0.4 hm3is proposed to be merged with the slab up to 0.5 hm3 and the rate for the merged slab is proposed to be Rs173/MMBTU. There will be no minimum charge in the domestic category.
For tandoor/roti, it is proposed to consolidate the slabs in the category of consumers because 95% of consumers fall in the last slab of the existing structure. It is proposed that there will be only one slab and the rate for all tandoors will be equal to the Average Prescribed Price (Rs928/MMBTU).
