Gas Prices in Pakistan anticipated to increase by July 2024

• SSGC requests a gas tariff increase from OGRA, effective July 1, 2024.
• The tariff hike proposal is part of a series of gas price increments in the ongoing fiscal year.
• Pakistan's economic delegation is in talks with the IMF for a second review under SBA.

The Sui Southern Gas Company (SSGC) has recently submitted a plea to the Oil and Gas Regulatory Authority (OGRA) for a gas tariff escalation, scheduled to take effect on July 1, 2024. The proposal put forth by SSGC outlines their intention to raise the tariff by Rs 324 per million British thermal units (mmbtu), resulting in a new average rate of Rs 1740.80 per mmbtu.

OGRA has responded to this plea by scheduling hearings to review SSGC's appeal. The hearings are set for today in Karachi and are further scheduled for March 20 in Quetta. This tariff hike proposal is the latest in a series of gas price increments witnessed during the ongoing fiscal year.

Amidst these developments, Pakistan's economic delegation is engaged in discussions with the International Monetary Fund (IMF) for the second review under the Stand-By Arrangement (SBA). The objective of this review is to unlock the disbursement of $1.1 billion from the IMF. The delegation has reportedly assured the IMF of impending hikes in gas and electricity tariffs as part of Pakistan's commitment to economic reforms.

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These developments highlight the ongoing negotiations and efforts to address economic challenges and meet fiscal targets. The outcome of the OGRA hearings and the discussions with the IMF will play a crucial role in shaping Pakistan's economic trajectory in the coming months.