Amid slump in economy, Pak’s petroleum division notifies hike in gas prices

INTERNATIONAL DESK: The Petroleum Division confirmed the alteration via an official notification, stating the new gas prices would be applicable from November 1st. The document outlined a peculiar exemption: protected consumers using 25 to 90 cubic meters of gas per month would be spared from the price hike. However, they too have not been left unscathed, as their fixed charges have skyrocketed from a meager Rs. 10 to a staggering Rs. 400.

For non-protected consumers, the escalation is nothing short of a nightmare. They face a gas price spike of over 172%. This translates to prices inflating from Rs. 200 to Rs. 300 per cubic meter for those using 25 cubic meters of gas per month. For those consuming 60 cubic meters, the rate has doubled from Rs. 300 to Rs. 600 per cubic meter.

The increase is even more profound for those using larger volumes of gas. Consumers using 150 cubic meters per month face a cost surge from Rs. 600 to Rs. 1,200 per cubic meter. For consumers using 200 cubic meters, the price has doubled from Rs. 800 to Rs. 1,600 per cubic meter.

The ripple of unease has turned into a wave of worry for those using over 400 cubic meters of gas per month. Their costs have risen from Rs. 3,100 to Rs. 4,000 per cubic meter. The price for gas stoves remains steady at Rs. 600 per cubic meter, while power plants face a set price of Rs. 1,050 per cubic meter. The cement sector is staring at a gas price of Rs. 4,400 per cubic meter, while the CNG sector faces a gas price of Rs. 3,600 per cubic meter.

The government’s decision has been met with widespread criticism. Consumers argue the price increase will put an additional financial burden on households grappling with an already struggling economy. The government, however, offers a different perspective. It claims the price hike is necessary to cover the losses incurred by gas companies and ensure the availability of gas for domestic consumption. The government argues that if prices were not increased, it would result in an annual loss of Rs. 400 billion.

The government also points to the declining gas reserves in the country and the need to import gas to meet demand. The rise in gas prices is expected to generate additional revenue for the national exchequer and reduce the burden on the economy.

The long-term impact of this price increase on the economy and the livelihoods of the people remains shrouded in uncertainty. However, one thing is clear: this decision has sent a chill through the households of Pakistan, a chilling reminder of the relentless cycle of economic hardship. (BNN)