190% hike in gas prices

Islamabad: The Economic Coordination Committee (ECC) of the federal cabinet on Wednesday gave the go-ahead to up to 190 per cent increase in natural gas tariff for domestic consumers and 31pc for all other categories.

The approval came during a meeting of the ECC with Advisor to the Prime Minister on Finance Abdul Hafeez Sheikh in the chair.

Sources relayed the revised gas prices, which will become effective on July 1, will help the government pocket an additional revenue of Rs500 billion.

The hike in gas tariff was among the conditions set by the International Monetary Fund (IMF) for a bailout package.

Sources said the government will again review gas prices in December.

It merits mention here that the Ministry of Energy had sent a summary to the Economic Coordination Committee, recommending up to 200 per cent hike in gas rates.

The ministry recommended to jack up gas prices up to 200 per cent for domestic consumers and 31 per cent for commercial consumers, whereas, 25 per cent increase will be made over monthly usage of 50 units and 50 per cent against 100 units.

Those people using 200 units per month will witness increased utility bills up to 75 pc and 100 pc for consuming 300 units.

Sources said that 150 pc increase will be made over usage of 400 units and 200 pc for using over 400 units.