ISLAMABAD: Prime Minister Imran Khan approved on Tuesday increase in gas prices up to 46 per cent as proposed by the Oil and Gas Regulatory Authority (Ogra).
The premier made the decision during a briefing on gas sector. Mr. Khan also ordered steps to control annual gas theft of Rs50 billion.
After the PM approval, the summary for the gas price increase will be presented to the next meeting of the Economic Coordination Committee (ECC) of the Cabinet. During the briefing, the PM was informed that there is no other way except the price increase to bridge the revenue gap of the Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC).
A senior official at the meeting said “There is no other way out,” when asked if the prime minister was convinced about the gas price increase when he had been talking about reducing the burden on common people.
Under the new gas tariff hike, once implemented, it comes with 186per cent increase in gas rates for poorest categories of domestic and commercial consumers, while the prescribed rates for other categories – industrial, cement, CNG, power and commercial – have been increased by 27 to 31 per cent for the two companies.
Ogra says SSGC, that serves Sindh and Balochistan, will need Rs167 billion during the next financial year to fund its programmes. Therefore, it has approved 45.54pc (Rs184.34 per unit) increase in the average prescribed price from its existing rate of Rs404.75 to Rs589.09 per unit.
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