Government to raise Gas prices by up to 37 percent

September 20, 2021

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The recent government proposal aims to significantly increase Gas prices by up to 43 percent , according to a Dawn News report, to partially offset the losses, which is impacting the final Cost to consumers.

The Petroleum Department says 57 percent of consumers consume gas in Slabs 1 and 2, where government dont intend to increase tariff.

The third slab is where almost two million consumers consume 18% of gas and a monthly average bill of Rs.3,733. The oil and gas division intends to raise the tariff by about 24 percent to Rs. 683 per mmbtu, showing an increase in the monthly average bill to Rs. 4,300.4On the other hand, only 3.3 percent of consumers belong to the fourth slab, consuming 300 cubic meters per month. It has been suggested to raise the tariff of the slab by 35% to Rs. 1,000 /mmbtu, which would increase the average monthly bill by Rs. 2,260 to Rs. 10,272.

Around the fifth Slab, about 93,000 consumers are currently charged Rs. 1,107 per unit, bringing the average bill to Rs. 14,400 a month. The Oil and Gas Division proposed an increase of 36 percent for this class of consumers – resulting in an increase of Rs. 1,500 per unit, increasing the monthly gas bill to Rs. 19,500.

Likewise, about 0.4% of consumers who use a monthly consumption of more than 400 units in the sixth and last slab, the division proposed an increase of 37% to Rs. 2,000 per unit. The monthly bill of Rs. 25,500 in this slab will increase to Rs. 34,625.