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The government approved a huge increase in gas prices

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The government has approved an increase in natural gas prices for various types of consumers starting from November 1st. This decision was made because the country’s natural gas reserves are decreasing each year, and the government is spending a significant amount of money on gas imports, leading to a substantial debt of Rs 2.1 trillion.

Initially, on October 23, the government gave the green light to the gas price increase. However, during a meeting on October 30, the Federal Cabinet decided to send the matter back for reconsideration by the ECC.

The Ministry of Energy is concerned because even highly profitable businesses are using natural gas at lower rates. The last time gas prices were raised was about two and a half years ago, and it generated 461 billion rupees for the government.

Here’s how the gas price changes will affect consumers:

  • Consumers using 25 to 90 cubic meters of gas per month will not see a change in their gas prices, but they will experience an increase in fixed charges.
  • For those using 25 cubic meters per month, the price will rise from Rs 200 to Rs 300 per unit of gas.
  • If you consume 60 cubic meters per month, your price will increase from Rs 300 to Rs 600 per unit.
  • Consumers using 100 cubic meters will now pay Rs 1000 per unit, up from Rs 400.
  • For those using 150 cubic meters, the price will increase from Rs 600 to Rs 1200 per unit.
  • If you use 200 cubic meters, your price will go up from Rs 800 to Rs 1600 per unit.
  • Consumers using 300 cubic meters will now pay Rs 3000 per unit, up from Rs 1100.
  • If you consume over 400 cubic meters, your gas price will go up from Rs 2000 to Rs 3500 per unit, and for those using more than 400 cubic meters, the price will increase from Rs 3100 to Rs 4000 per unit.

Gas prices for domestic consumers

The old and new Gas prices for domestic consumers are shown in the table below:

SlabsOld Rates (Rs./mmbtu)New Rates (Rs./mmbtu)Fixed Monthly Charge (Rs.)
Up to 0.25 hm32003001000
Up to 0.6 hm33006001000
Up to 1 hm340010001000
Up to 1.5 hm360012001000
Up to 2 hm380016002000
Up to 3 hm3110030002000
Up to 4 hm3200035002000
Above 4 hm3310040002000

Gas prices for other categories

The old and new Gas prices for other categories are shown in the table below:

CategoryOld Rates (Rs./mmbtu)New Rates (Rs./mmbtu)
Bulk16002000
Sp. Commercial (Roti Tandoor)697Unchanged
Commercial16503900
Power (KE, SNPC, EPQL)1050
Liberty Power24063890
Fertilizer Feed (Engro)$0.7/mmbtu200
Fertilizer Feed (FFBQL)510580
Fertiliser Fuel15001580
Cement15004400
Export Ind. Process11002100
Export Ind. Captive11002400
Non-Export Ind. Process12002200
Non-Export Ind. Captive12002500
CNG18053600

Initially, the government postponed the decision but later clarified that the gas prices would indeed increase. This decision will have a significant impact on both businesses and consumers.

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