Government ends gas slab discount, moves to flat rate system

Author: inp

The government has abolished the current tiered gas billing system with slabs and discounts, instead moving to a flat rate system for gas consumption. This change will impact domestic and industrial consumers alike, as everyone will be charged the same rate regardless of the amount of gas they use.

Under the new system, the price per unit of gas (MMBTU) will be uniform across sectors, including domestic, commercial, general industry, and even export-oriented consumers. The exact price is yet to be finalized and awaits approval. However, it is expected to be around Rs. 4,501 (excluding taxes) for consumers in Punjab, Khyber Pakhtunkhwa, and Islamabad.

This decision comes on the heels of a recent request by Sui Northern Gas Pipelines Limited (SNGPL) for a 147% increase in gas tariffs. During a public hearing, the company argued that the gas price needs to be raised to Rs. 4,446 per MMBTU to reflect production costs.

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