On the recommendation of the International Monetary Fund, the Economic Coordination Committee (ECC) of the Cabinet approved a 124% increase in gas prices (IMF).
Today’s meeting of the Economic Coordination Committee (ECC) of the Cabinet was presided over by Senator Mohammad Ishaq Dar, the federal minister of finance and revenue.
As opposed to the apportioned Revised Estimated Revenue Requirements (RERR) of Rs. 305 billion for the six-month period (January to June 2023), the Petroleum division informed the ECC to revise gas prices for residential and other categories of consumers, which would generate a revenue of Rs. 310 billion.
The gas price for protective domestic consumers Up to 0.25hm3 would be Rs. 121 Rs MMBTU, Rs. 150 up to 0.5 hm3, Rs. 200 up to 0.6 hm3 and Rs. 250 up to 0.9 hm3.
Sources told ProPakkistani that proposed sales prices for commercial consumers would be Rs. 121 up to0.5 hm3, Rs. 350 from Rs. 300 Up to 1hm3, Rs. 730 from Rs. 553 up to 2hm3, Rs. 1250 from Rs. 738 up to 3hm3, Rs. 2250 from Rs. 1107 up to 4 hm3 and Rs. 3270 from Rs. 1460 above 4 hm3.
Similarly, the government has also increased gas prices for the commercial user by 29% to Rs. 1650/mmbtu, for exporters by 34% to Rs. 1100/mmbtu, for general industries up to 13.9% to Rs l1200/mmbtu, for CNG up by 32% to Rs. 1805/mmbtu and for cement companies up by 15% to Rs 1500/mmbtu.
On June 3, 2022, OGRA published its assessment of the Estimated Revenue Requirements (ERR) for the fiscal year 2022–23 for SNGPL and SSGC. The aforementioned determination states that for the fiscal year 2022–23, SNGPL and SSGCL, respectively, need revenues of Rs. 261 billion and Rs. 285 billion.
The ERR of both gas providers was not permitted to include revenue deficits from prior years by OGRA. According to Section 8(3) of the OGRA Ordinance 2002, the government was required to notify OGRA within 40 days of the OGRA’s determination that consumer gas prices would be revised with effect from July 1, 2022 in accordance with government policy.
Consumer gas prices could not, however, be revised as of this writing. The Sui firms have already carried the income loss for the previous six months, from July to December 2022, as a result of price inactivity.
