The petroleum division informs the Oil and Gas Regulatory Authority (OGRA) about their intention to work on revising gas prices.
ISLAMABAD: (UrduPoint/Pakistan Point News-July 15th, 2023) The Federal government of Pakistan was preparing to raise gas prices in order to meet a condition set by the International Monetary Fund (IMF), the sources privy to the development said on Saturday.
The petroleum division informed the Oil and Gas Regulatory Authority (OGRA) about their intention to work on revising gas prices. This decision comes after the recent increase in power tariffs.
The sources within the power ministry revealed that the government has provided written assurance to the IMF regarding the gas price hike, which will be presented in the upcoming meeting of the Economic Coordination Committee (ECC).
Under the proposed plan, consumers falling into the last three slabs, with monthly gas consumption ranging from 300 to 400 cubic meters, will experience the impact of the price increase. For consumption of up to 300 cubic meters, the per MMBTU price will be Rs 1100, while for consumption exceeding 300 cubic meters, the price will be Rs 2000.
In a related development, Pakistan has also committed to the IMF to raise electricity prices during the current fiscal year to address the growing circular debt in the power sector. The finance ministry and the IMF have reportedly finalized a plan to tackle the circular debt in the ongoing financial year.
It is worth mentioning that Pakistan recently secured a $3 billion loan from the IMF after signing a staff-level agreement. The Executive board of the IMF approved the loan, with an immediate disbursement of $1.2 billion. The remaining $1.8 billion will be disbursed in two installments in November and February, subject to policy reviews.
