Gas prices to triple as subsidies for rich remain.

ISLAMABAD -- The caretaker government on Monday approved up to 193% increase in gas prices to recover additional Rs350 billion from consumers for saving gas companies from bankruptcy but turned down a move to completely abolish subsidies for richest exporters and industrialists.

For the domestic consumers, the prices have been increased up to 172% while for commercial consumers the increase is 137% and for cement manufacturers the increase in gas prices was 193% with effect from November 1.

The Economic Coordination Committee (ECC) of the Cabinet allowed the increase in gas prices for domestic, commercial and the compressed natural gas (CNG) users in addition to raising tariffs for only cement manufacturers.

It also approved import of 1 million metric tons of wheat and 200,000 metric tons of urea to meet the country's needs. Only the wheat import would cost the country over $250 million at existing international market rates.

Caretaker Finance Minister Dr Shamshad Akhtar chaired the ECC meeting, which endorsed a summary of the Petroleum Division for increasing the gas prices with effect from November 1. The matter would now be submitted before the federal cabinet for formal endorsement.

'The ECC approved the summary of the Petroleum Division for increase in gas prices,' said Energy Minister Mohammad Ali said after the meeting.

The finance ministry and the Planning Commission opposed provision of gas to the self-generation power plants, owned by the exporters and those industrialists selling goods in the local market. The ECC, however, overruled their objections and agreed to provide up to 44% subsidised gas to the exporters.

The decision is in violation of the federal cabinet's decision in 2021, where it had been decided to cut gas to those self-generation plants.

Industry Minister Gohar Ejaz said that the gas prices for exporters and the domestic industrialists had also been increased to an average of $8.5 per mmbtu. But these rates are still $4 lower than the prevailing liquefied natural gas (LNG) rates.

The government has not increased the gas prices for domestic consumers of up to 0.9 hm3 consumption. However, their fixed monthly bill has been increased from Rs10 to Rs400. The fixed monthly charge for consumption up to 1.5 hm3 has been increased from Rs460 to Rs1,000 while for consumption of over 1.5 hm3 it has been increased to Rs2,000 per month.

The tariffs for the highest domestic consumption are aligned with liquefied petroleum gas...