ISLAMABAD – The interim federal government has made the decision to raise natural gas prices in anticipation of the upcoming winter season in the nation, as revealed on Monday.
Reports, citing sources within the Ministry of Finance, express concerns about the potential increase in circular debt within the gas sector by Rs46 billion during the ongoing fiscal year. The International Monetary Fund (IMF) has reportedly raised apprehensions in this regard.
The losses incurred by gas companies have grown by Rs46 billion from July to September 2023, pushing the total circular debt to Rs2,700 billion.
In light of the current circumstances, the government has opted to significantly increase the price of Sui gas by over 100% before the economic review. Reports suggest that failing to adjust Sui gas prices would result in a shortfall of Rs185 billion. Furthermore, revising the price of RLNG for consumers may lead to a Rs21 billion deficit.
A proposal outlining the price hike for natural gas has been drafted and is expected to be presented at the next meeting of the Economic Coordination Committee (ECC).