Daily Times

The Economic Coordination Committee (ECC) of the federal cabinet on Wednesday approved up to 190% increase in natural gas tariff for the domestic consumers and 31% for all other categories.

The approval came during a meeting of the ECC with Advisor to Prime Minister on Finance Abdul Hafeez Sheikh in the chair.

According to reports, the revised gas prices, which will become effective on July 1, will help the government pocket an additional revenue of Rs 500 billion.

The hike in gas tariff was among the conditions set by the International Monetary Fund (IMF) for a bailout package. The government is likely to again review gas prices in December. It merits mentioning here that the ministry of energy had sent a summary to the ECC, recommending up to 200% hike in gas rates. The ministry had recommended jacking up gas prices by up to 200% for domestic consumers and 31% for commercial consumers.

After the decision, a 25% increase will be made for a monthly usage of 50 units and 50% for 100 units. Those people using 200 units per month will witness increased utility bills up to 75% while 100% increased has been made for people consuming 300 units. Reports said that 150% increase will be made for usage of 400 units and 200% for using over 400 units.