Massive hike in gas prices approved, making it up to 194% expensive for domestic users

The interim government has approved a massive hike in gas prices, making it up to 194% more expensive for domestic users!

The caretaker federal cabinet on Monday evening gave approval for the hike in gas prices, under which the monthly fixed gas charges for protected consumers have been increased by up to 3900 percent and for domestic consumers by 194 percent.

According to the report of Dawn newspaper, under this decision, the average price of gas will increase by 300% for protected consumers of gas from 0.25 to 0.9 cubic meters per month, while their annual bill is estimated to increase by 150%.

In a summary issued by the Petroleum Division after the meeting of the supervisory federal cabinet, it was notified that the federal government has approved the increase in gas prices for various categories of consumers as per the advice of the Oil and Gas Regulatory Authority (OGRA).

According to the statement, the cabinet yesterday sent the summary to the Economic Coordination Committee (ECC) for reconsideration, which was approved the same day.

After the validation of the new rates, the fixed charges for protected customers were increased from Rs 10 to Rs 400, representing a 3900 percent increase.

The tariff for heavy gas consumers has been increased by a quarter from Rs.1600 per MMBtu to Rs.2000, while there is no change in the tariff for the commercial category (oven), which is currently Rs 697 per MMBtu.

The tariff has been increased by Rs 3,900 per MMBtu for commercial consumers, Rs 4,400 per unit for cement factories, and Rs 3,600 per unit for CNG stations, while for export industries It has been increased to Rs 2,100 per MMBtu and Rs 2,400 per MMBtu for captive plants.

On the other hand, gas rates for non-export industries have been increased to Rs 2,200 per MMBtu and for captive plants to Rs 2,500 per unit, with no increase in gas rates for the power sector.