Hike in gas price inevitable, says caretaker energy minister

Caretaker Federal Minister for Energy, Power and Petroleum Muhammad Ali said Thursday that the hike in gas price was inevitable and announced to increase the gas prices in the coming days, ARY News reported.

While addressing a press conference alongside Caretaker Federal Minister for Commerce and Industry Gohar Ijaz, Muhammad Ali said that the gas price for domestic consumers will be increased.

Ali said that the government will not jack up the gas price for low-income consumers. He added that rich people in major cities are also using low-cost gas which needs to be addressed.

The minister said that the caretaker government has planned to adjust the difference in the gas tariff. He admitted that the province has the prior right to use gas to meet its demand from where the gas is being extracted.

Ali said that the gas sector is bearing the loss of Rs100 crore on a daily basis and an yearly loss of Rs3,000 crore. The minister added that the companies exploring gas reserves left the country.

The caretaker energy minister said that the government could not reduce the gas prices due to the International Monetary Fund (IMF) programme.

Earlier in the day, Caretaker Finance Minister Dr Shamshad Akhtar said that the decisions with regard to state-owned entities (SOEs) will be held under a prepared list.

Talking to media finance minister said that the caretaker government has been given a legal mandate for privatization and it could take key economic decisions including privatization of state entities.

Finance minister said that the state-owned companies will be removed from subordination of concerned ministries, and they won’t have to accept orders from these ministries.

“A policy has been presented to make the government companies as autonomous entities,” minister said. “The policy has also been displayed at the website of the Ministry of Finance,” Akhtar said.

Caretaker Finance Minister said that steps are being taken for revival of the national economy and profit-earning companies are being encouraged. In year 2020 SOEs losses were 500 billion, she said.