The Federal Cabinet of Pakistan, under the guidance of the Petroleum Division, has approved an increase in gas prices. An official notification has been issued, confirming that the new gas prices will come into effect from November 1, 2023. The price hike covers a range of consumer categories, but certain protected categories will not witness any changes in their gas rates.
According to the notification, monthly consumers using 25 to 90 cubic meters of gas, classified under the “protected” category, will not experience any price increments. However, fixed charges for protected consumers have been raised from Rs. 10 to Rs. 400.
The announcement also made it clear that there will be no increase in gas prices for the Roti Tandoors, ensuring the cost of producing this staple food remains stable.
The price adjustments primarily impact the 57% of gas consumers categorized as “non-protected.” The revised gas rates are as follows:
For monthly consumers using 25 cubic meters, the price has been increased from Rs. 200 to Rs. 300.
For those using 60 cubic meters per month, the price has been raised from Rs. 300 to Rs. 600.
Consumers using 100 cubic meters monthly will see their gas rates go up from Rs. 400 to Rs. 1,000.
For those using 150 cubic meters per month, gas prices will increase from Rs. 600 to Rs. 1,200.
Monthly consumption of 200 cubic meters will result in a price hike from Rs. 800 to Rs. 1,600.
Consumers using 300 cubic meters per month will witness a price rise from Rs. 1,100 to Rs. 3,000.
For consumers using 400 cubic meters per month, the rate is raised from Rs. 2,000 to Rs. 3,500.
Additionally, the price for tandoors, which are used for baking bread, has been set at Rs. 697, and power plants will have to pay Rs. 1,050 per mmBTU (million British thermal units).
The cement sector, a critical industry for construction, will see its gas prices adjusted. The prices have been reduced from Rs. 4,400 to Rs. 3,600 for already approved captive plants and from Rs. 2,050 to Rs. 2,100 for the process sector. The rate for export-oriented industries, known as Captive Power, will be Rs. 2,200 instead of the previous Rs. 2,050.
The adjustments have been made in various sectors to accommodate the concerns of different segments of consumers and industries. These decisions will have implications on the overall cost of living in Pakistan and the economic dynamics for several sectors.
