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Govt Has Only Approved Rs23 Increase in Gas Bill: Ministers

Islamabad (September 17, 2018): The Economic Coordination Committee (ECC) on Monday approved an increase in gas tariff.

Addressing media after the meeting in Islamabad, Petroleum Minister Ghulam Sarwar and Information Minister Fawad Chaudhry said that the Government has only approved an increase of Rs23 in the total gas bill for the common man.

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“We have only approved an increase of Rs23 in the total gas bill for the common man.”

Putting to rest speculations regarding a “gas bomb” being dropped on the public, Petroleum Minister Ghulam Sarwar while addressing the media after the ECC meeting said the increase in tariff is targetted at higher tariff slabs.

Sarwar further announced that tariff slabs for the commodity have also been increased from three in the past to seven now.

“Only 23 per cent of the country’s population is using the gas network,” he said.“Both Sui Southern Gas Company and Sui Northern Gas Pipelines Limited were in profit when the PML-N government came to power in 2013. Now, when they left, both companies were operating with a deficit of Rs152 billion rupees,” the petroleum minister said.

“It was difficult for the government to streamline issues as gas was being earlier purchased for higher prices and sold cheap,” Sarwar said.

Earlier, the Economic Coordination Committee (ECC) on Monday gave a go-ahead for increasing the gas prices.

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The meeting was presided over by Finance Minister Asad Umar.

He directed to pour minimal load on poor domestic consumers of gas while the hike has been finalized for the elite class.

Moreover; the tax on the import of Liquefied Petroleum Gas (LPG) has been minimized by 10 percent. Sources say that LPG prices will decrease through imports.

At present, SNGPL and SSGCL are facing a loss of Rs156 billion each year due to the subsidy given on gas prices. Ogra has determined Rs275 billion revenue requirements for SNGPL and Rs211 billion for SSGC. This includes Rs29.4 billion previous year’s shortfall of SNGPL.Increase in gas prices:
Domestic gas consumers using 50 meters will see an increase of 10%. The new rate per month will be Rs275 from the old rate of Rs252.”

Domestic gas consumers using 100 meters will see a rise of 15 per cent and the new rate per month will be Rs551 from old rate of Rs480.

Domestic gas consumers using 200 meters will see a rise of 20 per cent and the new rate per month will be Rs2,216 from the old rate of Rs1,851.

Domestic gas consumers using 300 meters will see a rise of 25 per cent. New rate per month will be Rs3,449 from old rate to Rs2,764.Domestic gas consumers using 400 meters will see a rise of 30 per cent. New rate per month will be Rs12,980 from old rate of Rs9,990.

Domestic gas consumers using up to 500 meters will see a rise of 143 per cent. New rate per month will be Rs 30,339 from old rate of Rs 12,482.

Domestic gas consumers using over 500 meters will see rise of143 per cent. New rate per month will be Rs36,402 from old rate of Rs 14,973.Finance Minister Asad Umar had directed the committee to not burden masses with the price hike, keeping the focus instead on higher tariff slabs.

Furthermore, the import tax on Liquefied Petroleum Gas (LPG) was decreased to ten per cent. Importing the commodity is expected to decrease its price.

Earlier on September 10, the Economic Coordination Committee (ECC) decided against an immediate increase in gas prices and left the final decision to Prime Minister Imran Khan.

Finance Minister Asad Umar chaired an ECC meeting in Islamabad and a hike in gas tariff was mulled over.

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“The ECC prepared guidelines for an increase in gas tariff,” sources added.

“A final decision on the hike in gas prices will be taken by Prime Minister Imran Khan,” the sources further said.

Further, the ECC decided to provide fertiliser factories with 50 per cent local gas and 50 per cent LNG.

“The LNG bills will be divided equally between the fertiliser companies and the government,” sources added.Stating that all fertiliser companies will continue production on full capacity, sources said, “Fertilisers will be imported to meet the demand for urea.”

The meeting will discuss issues pertaining to alteration in gas prices, controlling energy crisis and power circular debt.

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