Increase In Gas Prices Notified, Electricity Tariff Too Goes Up

Increase In Gas Prices Notified, Electricity Tariff Too Goes Up
The much-dreaded notification for increase in gas prices has been issued, as tariff for domestic consumers raised by 16 per cent to 197.8 per cent with one slab benefit and 31 per cent for industrial, commercial, power and CNG sectors from tomorrow (July 1).

In domestic sector, the consumers of first and sixth slab category will face no increase in gas price.

It didn’t stop there as the electricity tariff will also increase by Rs1.50 per unit from tomorrow, as the IMF deal is subjected to the increasing the utilities' prices.

According to a report published by The News, in domestic sector, the first slab consumers (up to 0.5 Hm3) will face no increase in gas tariff with the price Rs121 per unit.

However, second slab consumers consuming gas up to 1Hm3 will pay Rs300 per unit MMBTU instead of existing Rs127.

Other slabs are: Up to 2 Hm3 Rs553 per unit instead of Rs254, up to 3Hm3 Rs738 per unit instead of Rs275, up to 4 Hm3 Rs1,107 per unit from Rs780, over 4 Hm3 Rs1,460 per unit.

On the other hand, the export industries of textile, leather, carpet, surgical and sports will get gas at the rate of $6.5 per MMBTU, thus no increase in tariff.

The monthly bill for special commercial consumers (tandoor) with consumption up to 3Hm3 will be in accordance with the domestic slab.

Gas tariff for other sectors is: fertilizer fuel Rs1,021 per unit, powerhouses Rs824, cement Rs1,277, captive and general industry Rs1,021, CNG Rs1,283 and commercial consumers Rs1,283.

It is reported that the present tariff can generate a total revenue of Rs397 billion during the year resulting in a revenue shortfall of Rs144 billion. Therefore, revision in gas sale prices was considered inevitable.

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