Site icon e-Syndicate Network

Gas tariff for Pakistan’s domestic consumers increase sharply

Gas tariff for Pakistan's domestic consumers increase sharply

Gas prices for domestic consumers have been increased by up to 168.36% as per the latest announcement by the Minister for Power and Petroleum Omar Ayub Khan. The revised prices will be effective from July 1. However, domestic user falling in the first slab (consumption up to 0.5 Hm3) will remain unaffected. Prices for other slabs would increase as follows:
– Slab 2 – 136.2% (consumption up to 1 Hm3)
– Slab 3 – 101.89% (consumption up to 2 Hm3)
– Slab 4 – 168.36% (consumption up to 3 Hm3)
– Slab 5 – 41.92% (consumption up to 4 Hm3)

Rates for bulk gas users and for consumers falling in the sixth slab would be Rs.780 and Rs.1,460 per MMBTU respectively. The expense of conveyed gas for fertilizers would increase from Rs.185 to Rs.300 (62%). The expansion in gas costs for all classifications of buyers is connected with the expense of conveyed gas in rate terms. The expense of conveyed gas remains at Rs.738 per MMBTU. The monthly bill for special commercial consumers (roti tandoor) with consumption up to 3Hm3 will be in accordance with the domestic slab. For manure fuel, the tariff has been expanded by 31% of the expense of conveyed gas to Rs.1,021 per MMBTU. For powerhouses, the new gas value remains at Rs.629 per MMBTU.

The prices increment is likely to get an additional sum of Rs.397 billion during the year to further minimize the revenue shortfalls and that is why it was believed to be inevitable. Khan claimed that the decision was taken to slowly bring gas prices near to the expense of supply for most customers while ensuring the low-end buyers. “This is necessary for the long-term sustainability of the gas sector.”, he said.

He added that the structure was reconsidered to give one past advantage to the local purchasers. 95% of the domestic users were being cross-subsidized by the top of the line household buyers and different segments. The real purpose behind the increased billing during winter is wasteful and increased utilization of geysers and heaters.

The piece structure had been reconsidered to give one past advantage to the local purchasers, he stated, including that 95% of the residential shoppers were being cross-financed by the top of the line household buyers and different segments. The real purpose behind the high shopper charges during winter is wasteful and proceeded with the utilization of gas in fountains and radiators.