The ‘gas bomb’ has been dropped on the masses as the government approves the massive price hike

• The local gas tariff has increased by up to 173% for unprotected domestic consumers.
• Rates for commercial users increased by 136.4%. 83% for non-export industries.
• The monthly fixed charges have also been increased to Rs 400 for protected users.

ISLAMABAD: The caretaker government on Monday dropped a gas bomb on the inflationary masses by approving a massive hike in gas prices to be effective from November 1 (Wednesday).

The government increased the local gas tariff by up to 173% for unprotected residential consumers, 136.4% for commercial, 91% for export and 83% for non-export industry.

According to the approved summary, fixed monthly charges for protected consumers were revised upwards from Rs 10 to Rs 400, for non-protected from Rs 460 to Rs 1000 and for higher slabs up to Rs 2000.

The price for unprotected users consuming up to 0.25 cubic meters will be Rs 121 per mmbtu, up to 0.5 cubic meters will be Rs 150 per mmbtu, for users with 0.60 cubic meters Rs200 per mmbtu, while 0.9 cubic meters Rs250 per mmbtu.

Prices for people using 1 cubic meter of natural gas per month have increased from Rs 400 per mmbtu in the previous to Rs 1,000.

Those using natural gas up to 1.5 cubic meters – who were earlier paying Rs 600 per mmbtu – will now have to pay Rs 1,200 per mmbtu.

Meanwhile, small commercial users such as local tandoors will pay Rs 697 per mmbtu from November 1.

The power sector will have to pay Rs 1,050 to Rs 3,890 per mmbtu. The cement industry will pay Rs 4,400 per mmbtu.

Prices for the export industry have been set at Rs 2,100 to Rs 2,400 per mmbtu, while non-export industries will pay between Rs 2,200 and Rs 2,500.

The Energy Department, in its press release, argued that the interim arrangement had to raise gas prices on the advice of the Petroleum and Natural Gas Regulatory Authority to avoid adding Rs 400 billion to the already mounting circular debt.

The authority emphasized that 57% of residential gas connections belong to the protected category where there is no increase in the price of natural gas.

“In the name of affordability, some of the country’s most profitable businesses are using the cheapest natural gas. This has unjustly enriched certain industries while disenfranchising the lower income class, including poor farmers and small-scale industries,” the statement said. .