Cash-strapped Pakistan adds more burden on citizens, hikes gas tariff by 173% for non-protected domestic consumers

Pakistan’s cash-strapped government has been burdening its citizens who are struggling to make ends meet. In a latest, caretaker government has hiked local gas tariff by a whopping 173 per cent for non-protected.

The caretaker government has increased 136.4 per cent on commercial gas, 91 per cent on export and 83 per cent for the non-export industry.

The fixed monthly charges for protected consumers have now been revised upward from Rs 10 to Rs 400, for non-protected from Rs 460 to Rs 1000, and for higher slabs up to Rs 2000.

The cost for non-protected users consuming up to 0.25 cubic meters will be Rs 121 per metric million British Thermal Unit (mmbtu), up to 0.5 cubic meters will be Rs 150 per mmbtu, for users with 0.60 cubic meters Rs 200 per mmbtu, while 0.9 cubic meters Rs 250 per mmbtu.

The new prices will come into effect for Wednesday, 1 November.

Small commercial users including local tandoors will now have to pay Rs 697 per mmbtu.

Price for 1 cubic metre of gas per month have been jacked up from the previous Rs 400 per mmbtu to Rs1,000 mmbtu.

Those with gas usage of up to 1.5 cubic metres — who were previously paying Rs 600 per mmbtu — will now have to pay Rs 1,200 per mmbtu.

The power sector will have to pay Rs 1,050 to Rs 3,890 per mmbtu. The cement industry will pay Rs 4,400 per mmbtu.

Rates for the export industry have been set from Rs 2,100 to Rs 2,400 per mmbtu, whereas non-export industries will pay between Rs 2,200 to Rs 2,500 mmbtu.

Justification for price rise

In its release, the Power Division of Pakistan, said the interim setup had to increase gas prices following Oil and Gas Regulatory Authority’s advice to avoid Rs 400 billion being added to the already ballooning circular debt.

It further emphasised that 57 per cent of the domestic gas connections fall in the protected category where there is no increase in gas price.

“In the name of affordability, some of the most profitable businesses of the country are availing the cheapest natural gas. This has unduly enriched certain sectors while depriving lowest income class including poor farmers and small-scale industries,” the statement mentioned.

With inputs from agencies