Petroleum Ministry prepares summary for 200 pc hike in gas prices

ISLAMABAD: Gas consumers are likely to witness major increment in their gas utility bills as the concerned authorities have recommended up to 200 per cent hike to the Economic Coordination Committee (ECC), ARY News reported on Monday.

Petroleum Ministry sent a summary to the Economic Coordination Committee of the federal cabinet, recommending up to 200 per cent hike in gas rates.

The ministry recommended to jack up gas prices up to 200 per cent for domestic consumers and 31 per cent for commercial consumers, whereas, 25 per cent increase will be made over monthly usage of 50 units and 50 per cent against 100 units.

Those people using 200 units per month will witness increased utility bills up to 75 pc and 100 pc for consuming 300 units.

Sources said that 150 pc increase will be made over usage of 400 units and 200 pc for using over 400 units.

It is pertinent to mention here that that Oil and Gas Regulatory Authority (OGRA) had earlier announced its decision to increase gas prices for the fiscal year of 2019-20.

Earlier on May 17, OGRA had approved hike up to 47 percent in gas prices.

The OGRA had proposed hike in gas prices from July 1. The gas prices will be applied following a notification of the government.

Gas price for the Sui Northern Gas Company (SNGC) consumers has been increased by Rs236 per MMBTU. While, gas price for the Sui Southern Gas Company (SSGC) has been increased by Rs159 per MMBTU.

The spokesperson for the OGRA said the increment in gas prices has been made for financial year 2019-20.