Opposition slams Govt over proposed price hike in gas tariff

Aizbah KhanWeb Editor

20th Sep, 2021. 02:43 pm
Zubair Umar terms leaked video 'fake' and 'new low' in politics

Zubair Umar terms leaked video ‘fake’ and ‘new low’ in politics

Spokesman of Nawaz Sharif and his daughter Maryam Nawaz Mohammad Zubair has lambasted the government over the proposed price hike in gas tariff.

In a Tweet, the ex-Governor Karachi said that the only solution for this government to cover up its incompetence and corruption is to increase the prices of everything adding that now is the time to hike gas prices for the government.

It is pertinent to mention here that, the government has proposed an inverse gas tariff plan under which consumers will get a dramatic increase in gas prices by 43%.

The move is part of a fresh subsidy mechanism for gas prices under consideration by the Cabinet Committee on Energy (CCOE) to increase dependence on electricity instead of natural gas during the four winter months (November-February).

However, it remains to be seen whether electric devices are available in the market instead of gas so that consumers can benefit from the transition from gas to electricity.

According to the Petroleum Division, about 47% of the gas consumers in the first slab use about 32% of the available gas, they are charged Rs 121 per million British thermal units (MMBTU) and their monthly bill is Rs. 308.

In the second slab, 30 per cent of consumers use about 25 per cent of the gas, they are charged Rs 300 per MMBtu and their monthly bill is currently Rs 957.

This means that 57% of consumers use about 77% of gas and the Ministry of Petroleum wants to protect them without changing the tariff.

The third slab covers about 2 million consumers who use about 18% of the available gas, currently receives Rs. 553 per unit and has a monthly bill of Rs. 3,733.

The Petroleum Division wants to increase the gas rate for such consumers by about 24% or Rs 683 per unit.

In addition, 3.3% of consumers fall into the fourth slab with monthly consumption of 300 cubic meters and currently receive Rs 738 per unit, which means their monthly bill is Rs 8,016.

The Petroleum Division has proposed to increase the price of this category by 35% ie Rs. 1000 per unit, which will increase their monthly bill by Rs. 2,260 to Rs. 10,272.

It has been proposed to increase the rate of gas used by 93,000 consumers of the fifth slab by 36% ie Rs. 1,500 per unit, which could increase their bill by Rs. 5,100 to Rs. 19,500.

Similarly, in the sixth and last slab, it has been proposed to increase the tariff of gas used by 49,400 consumers by 37% ie Rs. 2,000 per unit.

Such customers are being charged Rs 1,460 per unit and in case of an increase, their monthly bill could reach Rs 34,000 to Rs 625.

According to the Petroleum Division, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) are facing challenges as local gas supply sources are depleted and there is no increase.

The residential sector in Pakistan has emerged as the second-largest consumer of gas after electricity and fertilizer.

The main use of gas for residential consumers is to cook food in summer and to heat water in winter and warm the house, resulting in a huge increase in demand and consumption of gas.

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