ECC okays major hike in gas prices for domestic consumers

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) has approved a major hike in gas prices for domestic, commercial and industrial sectors.

The decision was taken in the ECC meeting which was held in Islamabad on Thursday with Finance Minister Miftah Ismail in the chair.

According to details, the government approved increase in gas prices in the range of 43% to 235% with effect from July 1 in a bid to recover Rs660 billion from the majority of domestic and all other categories of consumers.

The rates for domestic consumers have gone up by 43 to 335pc.

According to a summary presented before ECC, the slabs have been reduced from seven to five. Among the existing five slabs, the government did not increase the gas price for the second slab for users up to 1 hm3; its prices will remain unchanged at Rs300 per MMBTU.

The ECC approved an increase in the gas prices for domestic consumers using up to 0.5 cubic meters per month of gas to Rs173 per MMBTU – an increase of 43%. Their exiting rate is Rs121.

The third slab (200 cubic metres) and fourth slab (300 cubic metres) would jump 26pc and 151pc to Rs696 and Rs1,856 per unit.

The rate for above 400 cubic meters was currently charged at Rs1,460 per unit, which would now face a 154pc increase to Rs3,712 per unit, according to a summary.

Furthermore, on a summary of Power Division, the ECC granted approval for issuance of GoP sovereign guarantee of 10 billion rupees for construction of two units of 660 MW Super Coal Power Projects.