September 27, 2020

ECC Decreases Gas Prices For Tandoors

The Executive Coordination Committee (ECC), headed by Finance minister Dr. Abdul Hafeez Sheikh, approved a proposal submitted by the Ministry of Energy to decrease the prices of gas for tandoor shops to previous levels.

The proposal was submitted when the PM took notice of the increase in prices of roti and directed the authorities to reduce the gas prices to previous levels to facilitate the poor segment of the society.

After this notification, the gas prices for tandoor shops, for all units consumed above 300 cubic meters, have come down to Rs700 per MMBtu from Rs1283/MMbtu. The gas tariff had increased the prices of roti by Rs3-5.

The government has directed the price control authorities to visit the markets and make sure that the effects of the decreased gas prices are reaching the common person. The government has given almost Rs1.5billion to the gas companies in the form of subsidies for gas prices for naan and tandoor shops.

However, the gas prices account for only 20%-25% of the total cost of roti, the major part of the cost, approximately 60%-65% comes from the cost of wheat. In a report submitted to the ECC, Pakistan has abundant stocks of wheat in the country to cater to the local demand. After the ECC imposed a ban on the exports of wheat a month ago, the prices of wheat have reduced significantly.

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