The government on Monday increased the prices of gas, especially targeting the ‘upper class’ using more than 500 cubic meters of gas per month.
The gas prices have been increased by 10 to 20 percent for majority of the consumers using 50-200 cubic meters of gas per month, having an impact of less than a hundred to a few hundred rupees on most of the low income groups.
“Bill of the 38 percent of the people who use 50 cubic meters of gas per month will increase from Rs 252 to Rs 275. Bill of 28 percent of people who consume 100 cubic meters of gas will rise from Rs 480 to Rs 550. Bill of 19 percent of the consumers who use 200 cubic meters of gas will hike from Rs 1,851 to Rs 2,214,” Minister for Petroleum Ghulam Sarwar Khan told media at a joint press conference along with Information Minister Fawad Chaudhry here outside the Parliament House after a meeting of the Economic Coordination Committee (ECC) of the cabinet. “Price hike for consumers who use up to 300 cubic meters of gas every month will be 25 percent, while consumers who use up to 400 cubic meters of gas will see a 30 percent increase in their bills,” he said. “Domestic gas consumers using up to 500 cubic meters will see a rise of 143 per cent in gas tarrif. New rate per month will be Rs 30,339 from old rate of Rs 12,482. Consumers using over 500 meters will see rise of 143 per cent and new rate per month will be Rs 36,402 from old rate of Rs 14,973,” he added.
The minister said the committee had approved increase in gas prices and decided to create seven slabs instead of the present three slabs to spread the cost. The new prices would come into effect from October.
He said the CNG prices for consumers in Sindh and Khyber Pakhtunkhwa had been increased by 40 per cent from Rs 700/mmbtu to Rs 980/mmbtu. The reason behind this hike, he said, was that since the two provinces produce more gas, they had been enjoying a lower rate of CNG. Prices in Punjab, he said, were higher because the province was using imported gas.
The ECC also approved a 57 per cent increase in gas prices for the commercial sector, a 40-50 per cent increase for the fertiliser sector, a 40 per cent increase for general industry, a 57 per cent hike for the power sector, and a 30 per cent increase for the cement sector.
The committee decided to lift all taxes imposed on the Liquefied Petroleum Gas (LPG) used by 60 per cent of the people who don’t use CNG and levy a flat 10 per cent Goods and Services Tax on it instead. As a result, the minister said, the price of an LPG cylinder which was currently over Rs 1,600 will decrease to Rs 1,400. “On one hand, we are adding a burden of 10-20 per cent on domestic gas consumers which is only of a few rupees,” he said.
“But on the other hand, we are providing relief of Rs 200/cylinder to the people who are poor and use LPG.”
Gas prices for export industries, including jute, carpet, textile, sports goods, leather and surgical goods, have not been increased. The subsidised Liquefied Natural Gas (LNG) imported by the private sector will be provided to the zero rated industries. “We haven’t worked it out yet, but we will be giving subsidies worth billions of rupees on LNG,” he claimed. “We will be providing relief to our export industries,” he said, adding the government had also decided to provide subsidies to domestic industries like fertilisers, etc.
Published in Daily Times, September 18th 2018.
