Govt likely to increase gas tariffs up to 193pc.

The government of Pakistan plans to increase natural gas prices for various consumer categories, including non-protected domestic consumers, bulk consumers, commercial consumers, the export industry, non-export industry, CNG (Compressed Natural Gas), cement, and Liberty Power. These increases range from 25 percent to 193 percent, sources close to Petroleum Ministry told Business Recorder.

However, there will be no change in gas prices for the 'protected' category of domestic consumers, Roti Tandoor, and the feed gas of Engro's fertilizer plant. For protected consumers, the fixed monthly charge has been significantly increased from Rs 10 to Rs 400, amounting to a 3900 percent increase.

The government has not adequately revised consumer gas prices in line with OGRA's determinations since FY 2013-14. This has led to an accumulation of revenue shortfalls, with SSGCL and SNGPL facing a total shortfall of Rs. 878 billion as of June 2023, writes Mushtaq Ghumman in Business Recorder. It is said that price inaction could lead to a revenue shortfall of Rs 185 billion on natural gas alone, contributing to the circular debt in the petroleum sector.

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