In response to mounting pressure from the International Monetary Fund (IMF) to raise gas prices, the Pakistani government is actively working to accelerate the determination of gas rates. This development comes on the heels of the IMF’s push for higher gas prices over the past month.
The government’s strategy includes implementing higher rates for consumers who use more gas while safeguarding low-consumption and protected consumers. Under this initiative, the initial four slabs of domestic consumers, using 0.25, 0.5, 0.6, and 0.9 cubic meters of gas, respectively, will not face an increase in gas prices. However, the remaining eight slabs of consumers will see an adjustment in gas rates.
For consumers using more than 4 cubic meters of gas, a substantial increase in gas prices is anticipated, ranging from 3600 to 3700 rupees per MMBTU (Million British Thermal Units).
Likewise, significant rate hikes are expected for consumers using 3 and 4 cubic meters of gas. Approximately 60% of consumers are likely to experience an increase of 200 to 400 rupees per MMBTU in gas rates, with finalization pending.
The government’s current approach involves selling Regasified Liquefied Natural Gas (RLNG) at an average rate of 1100 rupees per MMBTU, despite importing it at a rate of 3700 rupees per MMBTU, a practice considered illegal.
It’s worth noting that the last gas price increase was implemented by the federal government on January 1, 2023.
A senior official from the Ministry of Energy confirmed that the IMF has been exerting increased pressure on the government to raise gas prices. Notably, the Oil and Gas Regulatory Authority (Ogra) had set rates for Sui Southern and Sui Northern consumers on June 2, 2023.
