The outgoing government in Pakistan is poised to announce a significant increase in gas prices as the nation grapples with economic challenges. The Economic Coordination Committee (ECC) approved a substantial tariff hike, meeting the deadline set by the International Monetary Fund (IMF). The approved average tariff increase for gas consumers in Punjab, KP, and Islamabad is 35.13%, while Sindh and Balochistan consumers face an 8.57% hike.

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The new tariff stands at Rs1673.82 per MMBTU for Sui Northern and Rs1466.40 per MMBTU for Sui Southern. The final decision will be made by the Federal Cabinet to meet the IMF’s deadline for the gas price hike, a part of the structural benchmark criteria.

The proposed increase also includes higher rates for bulk domestic and special commercial users, and a surge in feed and fuel gas prices for specific fertilizer plants effective March 1, 2024. As the nation copes with economic difficulties, the move is likely to impact consumers facing challenges in meeting the costs of basic commodities.