ISLAMABAD – Although government is considering to further lower the prices of petroleum products but the no relief is on pages for gas consumers as 23 per cent price hike summary by the concern ministry lands on Prime Minister’s Desk.
According to the official sources from Prime Minister Secretariat the summary to increase the prices for gas consumers reached the desk of Nawaz Sharif on Wednesday.
The proposed prices will increase the tariff up to 23 per cent for all categories except for domestic consumers.
The summary was sent after the gas utilities companies expressed strong reservations that they might face dire financial constraints if gas tariff was not increased. The Sui Southern and Sui Northern could go default as well. Both the companies had also filed a petition in the court against non-increase in gas tariff.
The current gas tariff for commercial sector stands at Rs 636.83 per MMBTU, Industrial Rs 488.23 per MMBTU, CNG Rs 656.52 per MMBTU, cement Rs 742.97 per MMBTU, fertilizers sector Rs 123.41 per MMBTU for gas used as feed, Rs 488.23 per MMBTU for gas used as fuel for electricity generation, Rs 488.23 per MMBTU for Wapda and KESC, captive power plants and IPPs for power generation.
Not to forget that from November 1, 2014, federal government had reduced petroleum prices up to Rs 14 and Rs 9 reduction was made natural gas. Transports Association also provided the facility to pubic and reduced minimum 10 to 20 per cent fares of buses in intra and inter city services.