In a significant move impacting households, businesses, and industries, the Economic Coordination Committee (ECC) has given its nod to an increase in gas tariffs. The meeting, presided over by Finance Minister Dr. Shamshad Akhtar, marked a crucial decision-making juncture.
Effective from November 1, 2023, the ECC has granted approval for a 193% surge in gas prices and a revision of fixed charges on gas meters from a nominal Rs 10 to a more substantial Rs 400 per month.
The Ministry of Petroleum’s proposal found favor with the ECC, which will see the gas tariff surge by 193%. However, domestic consumers will experience a slightly less severe increase, with the price of gas set to rise by 172%.
These changes impact various consumer categories, with the gas price for non-protected consumers, consuming up to 0.25 cubic meters per month, increasing to Rs. 300. Those utilizing 0.60 cubic meters will pay Rs. 600 per mmbtu, while those with 100 cubic meters per month will see their bills increase as well.
For consumers utilizing 150 cubic meters per month, the monthly tariff will go up by Rs. 600, whereas those consuming 200 cubic meters per month will see an increase of Rs. 800 per month. Customers using 300 cubic meters per month will experience a more substantial hike, with the tariff increasing to Rs. 1900 per mmbtu. For those consuming 400 cubic meters or more, a Rs. 1500 increase applied.
Notably, the cement sector has seen a considerable spike in gas tariffs, with an increment of Rs 2900 per mmbtu, taking the price from Rs 1500 to Rs 4400 per mmbtu.
Meanwhile, the gas price for CNG has been greenlit to increase by Rs 2,595 per mmbtu. It’s important to mention that the gas price for power plants and ovens proposed to remain unchanged.
In addition to the gas tariff revisions, the ECC has made a decision to import 1 million metric tons of wheat from overseas. This strategic move for the financial year 2023-24 aims to bolster strategic wheat reserves.
Furthermore, a technical supplementary grant of Rs 48.4 million for the IRA has approved by the ECC.