September 29, 2020

Petroleum Division Proposes 200% Increase In Price Of Gas For Domestic Users

The petroleum division has proposed to raise the prices of gas by 200% for domestic consumers, starting from 1st July, 2019. While the increase in the prices of gas, fertilizer, power, cement and CNG sector are proposed to be 31%. The gas prices usually change twice a year, in January and in July.

According to Dawn news, the proposed increases are as follows:

  • For the first slab of domestic consumers, consuming less than 50 cubic meters/month, the proposed increase is PKR 184/MMBTU (million British thermal unit) from the existing PKR 121. The monthly bill might increase from PKR 285 to PKR 422.
  • For the second slab of consumers, who consume 50-100 cubic meters, expected increase is from PKR 127/MMBTU to PKR 369/MMBTU. The monthly bill may increase from PKR 570 to PKR 1200.
  • Rates for consumers using 100 to 200 cubic meters/month, are expected to increase from PKR 264 to PKR 553/MMBTU. The monthly bill is expected to increase from PKR 2300 to PKR 4000.
  • The rates for consumers using 201-300 cubic meters/month, is expected to increase from PKR 275 to PKR 738/MMBTU. The monthly bill is expected to increase from PKR 3500 to PKR 8000.
  • For the consumers using 301-400 cubic meters/month, the rate might increase from PKR 780 to PKR 1108/MMBTU. The consumer’s monthly bill might increase to PKR 14500 from PKR 13500.
  • For the consumers using more than 400 cubic meters a month, the proposed increase in price is PKR 1476 from the existing PKR 1460/MMBTU.

Pakistan has been looking for any source of cash that it can get its hands on, this time the domestic gas consumers are going to be tapped. If the proposed plan goes through, the estimated flow of revenue to the government is expected to increase by over PKR 170 billion.

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