Gas tariff likely to be hiked by 200%

ISLAMABAD: The caretaker federal government is likely to approve a massive hike in gas tariff up to 200% and an increase in terms of fixed charges for protected consumers, ARY News reported on Wednesday.

The caretaker federal government started preparations to throw an additional financial burden on the gas consumers.

Sources told ARY News that recommendations have been forwarded to the government to increase fixed charges on the protected consumers.

It was recommended to increase the fixed charges from Rs10 to Rs400 on the protected consumers. Overall 200% hike was recommended, including 172% increase for domestic consumers and 198.33% for other categories.

It was also recommended to make the hike on the gas tariff effective from October 1, sources added.

Earlier in the month, it emerged that the caretaker government will announce to hike in gas prices on the demand of the IMF. The former PDM government had deferred the decision of the gas price hike.

The International Monetary Fund (IMF) demanded to enhance the gas prices in the country by 45 percent.

The IMF has demanded to generate 435 billion rupees in revenue with an increase in gas rates, sources said. The lender has not been prepared to show flexibility in its demand for a hike in the gas tariff, sources said.

Sources shared that the government has prepared a strategy to save small consumers of gas from the rate hike by avoiding increases for them. “Caretaker government will save 64 per cent gas consumers from the price hike,” according to sources.

The government is expected to announce a 45 pct hike in gas rate with an official notification soon, sources said.

The gas tariff hike will come into force from the back date of July 1st, sources said.