Gas Price Surge.

The recent decision by the Economic Coordination Committee (ECC) of the Cabinet to approve a substantial hike in natural gas prices has sent shockwaves through Pakistan's consumer and industrial sectors. This significant move, which is set to be implemented on November 1, marks a dramatic escalation in gas prices, with some rates surging by up to 194 percent. While the ECC's decision is undoubtedly a response to the growing deficit and depleting natural gas reserves in the country, it raises concerns about the impact on the average citizen and businesses.

The decision, which Caretaker Finance Minister Shamshad Akhtar presided over, comes after Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) reported a combined deficit of Rs 46 billion for the period from July to September. The dire financial situation of these gas companies has undoubtedly influenced the government's choice to pass on the burden to consumers.

Domestic consumers, both protected and non-protected, will bear the brunt of these price hikes. Fixed monthly charges for protected consumers will witness a monumental increase, jumping from a mere Rs10 to Rs400. For non-protected consumers, the charges have seen a considerable rise, with the first category surging from Rs460 to Rs1,000 and the second category escalating from Rs460 to Rs2,000. While tariff rates for protected consumers remain unchanged, the monthly charges...