ISLAMABAD: Gas prices are expected to rise by 10% to 15% to reduce government circular debt, which is currently Rs 1,250 billion، The News reported on Thursday.
The decision comes as the International Monetary Fund (IMF) asked Islamabad to raise natural gas prices from January 1 next year. However، The lender is aware that the government is accumulating Rs 980 billion in revenue during the current financial year 24 due to the increase in gas prices up to 193 The scale is increasing%.
“Authorities are considering a 10-15% increase in the sale price of natural gas, which will generate additional revenue of Rs 100 billion. It has to be used to reduce the circular debt of natural gas. However, no final decision has been made in this regard, “said senior government officials at the Ministry of Energy، He added that gas prices would increase by only 5% to generate Rs 50 billion.
With a massive 193% increase in gas prices from November 1, 2023, The government will have an additional revenue of Rs 275 billion to pay Rs 210 billion against turning RLNG towards the domestic sector in the ongoing winter season Will be spent. It also covers a loss of Rs 65 billion due to the government’s failure to report a four-month delay in rising gas prices.
Gas companies, Sui Southern and Sui Northern will submit their applications to the OGRA for adjustment in gas prices from January 1, 2023, Which would potentially demand a downward revision in gas prices.
However, the fund wants the government to increase gas prices by 10-15% from January 1, 2024. The fund pointed out that the government has failed to increase gas tariffs twice in the last 10 years since 2013، Which has led to a massive increase in gas circular debt.
