Federal cabinet approves Rs7.91 per unit power tariff hike

ISLAMAMABAD: The federal cabinet has approved to jack up electricity prices by Rs7.91 per unit, ARY News reported on Tuesday.

Addressing a news conference along with Minister of State for Petroleum Musadik Malik in Islamabad on Tuesday, Minister for Power Khurram Dastgir said there will be an increase of 3.50 rupees per unit from 26th of this month. There will be another increase of 3.50 rupees per unit from next month whilst in the month of October, the tariff will be increased by ninety paisa per unit.

Dastgir said increase in the electricity tariff will not have an impact on the poorest consumers. He said the consumers are already paying a big portion of this increase in the form of fuel surcharge. He said this fuel surcharge will now be reflected in the tariff.

Read more: Gas prices for export-oriented sectors increased by up to 80%

He said these three months will be difficult for the consumers but the electricity prices will start coming down from the month of November after reflection of fuel surcharge in the tariff.

Khurram Dastgir said the cabinet has also considered providing gas and electricity to five major export sectors on reduced rates. An announcement to this effect will soon be made. He said we will give the tariff that is close to the regional countries in order to bolster our exports.

Khurram Dastgir said the present government has reduced the circular debt by 214 billion rupees. He said steps are being taken to reduce line losses.