The government has increased gas tariffs for the general industry, including the textile sector and captive power plants, to secure a new bailout package from the International Monetary Fund (IMF), according to sources.
The gas price has been raised from Rs2,750 to Rs3,000 per million British thermal units (mmbtu), effective immediately.
The move is expected to significantly boost the revenue of the Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), adding an estimated Rs92 billion annually. As a result, the combined revenue of the two companies is projected to reach Rs1,029 billion, surpassing the previous target of Rs898 billion.
The government has also planned a further increase in gas prices for the general industry in January 2025, aligning with another IMF requirement. This second hike is anticipated to generate an additional Rs40 billion, bringing the total revenue from the two increases to over Rs132 billion.
In addition to the tariff hikes, the IMF has demanded the withdrawal of captive power plants from the national gas grid by January 2025. Future gas rates for these plants will be adjusted to match the rates of Regasified Liquefied Natural Gas (RLNG), further aligning with IMF directives.
Finance Ministry officials have assured that the existing gas rates for consumers outside the general industry will remain unchanged. This decision aims to mitigate the impact on residential consumers and other sectors not covered by the recent increases.
On June 30 midnight, the government increased petrol price by Rs7.45 and diesel price by Rs9.56 per litre. The Ministry of Finance in an issued notification stated that "the prices of Petroleum products have seen an increasing trend in the international market during the last fortnight".
It added that The Oil & Gas Regulatory Authority (OGRA) has worked out the consumer prices, based on the price variations in the international market.
