ECC approves hike in gas prices

ISLAMABAD: The Economic Coordination Committee (ECC) has approved the Petroleum Division’s recommendation not to reduce the gas prices, ARY News reported.

The meeting was presided over by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, said a press release issued here.

The meeting was attended by the Minister for Petroleum Musadik Masood Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance & Revenue Ali Pervez Malik, representatives from Oil and Gas Regulatory Authority, Federal Secretaries, and other senior officers of the relevant ministries.

The ECC meeting approved hike in gas prices for captive power plants (CPPs) by Rs250 to Rs3,000 per mmBtu on the recommendation of the Petroleum Division. The existing gas price for CPPs stands at Rs2,750 per mmBtu.

In recent IMF talks, adjusting gas prices by July 1, 2024, and phasing out captive power plants by January 2025 were set as major conditions.

The captive power industry, substantial consumers of gas and RLNG, provides extra revenues for cross-subsidization in the domestic sector.