Interim govt considers up to 200% Gas tariff hike

Islamabad: The interim federal government in Pakistan is considering a substantial increase in gas tariffs, potentially up to 200%, along with elevated fixed charges for certain consumers, imposing an additional financial burden on gas consumers.

The sources indicated that recommendations had been made to raise fixed charges for protected consumers, proposing an increase from Rs10 to Rs400. These recommendations suggested an overall tariff hike of 200%, with a 172% increase for domestic consumers and a 198.33% increase for other categories.

Furthermore, the proposed gas tariff hike may be implemented from October 1. This move follows reports earlier this month, suggesting that the caretaker government intends to raise gas prices, a decision driven by the International Monetary Fund (IMF).

The IMF has pressed for a 45% increase in gas prices in Pakistan to generate an additional 435 billion rupees in revenue. Despite calls for flexibility, the IMF has maintained its stance on raising gas tariffs.

However, there are efforts to shield small gas consumers from these rate hikes. Sources indicate that the interim government plans to spare approximately 64% of gas consumers from these price increases.

It is expected that the government will officially announce a 45% hike in gas rates through a notification soon, with the tariff adjustment being retroactively applied from July 1st.