Will Cut in Gas Subsidies For IMF Affect a Common Man?

The gas prices are likely to go up by 35% as the government has decided to cut subsidies on the demand of the International Monetary Fund (IMF).

The new tariff will be enforced from next month and the citizens falling in four slabs will experience a significant increase in the bills from November.

Notably, the next round of dialogue between IMF and Pakistan is likely to take place in mid-October.

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The recommendation by the petroleum division to cut subsidies at the behest of IMF will be presented before the Cabinet Committee on Energy (CCoE).

The increment in bills will stay enforced from November to February.

The subsidy cut will affect four of six slabs for consumers as there will be no changes in the first two slabs.

The first two domestic slabs comprise 78% of consumers with 57% of gas consumption in the country.

The consumers burning up to 2 hm3 gas will have a tariff of Rs 683 per Million British Thermal Unit (MMBtu) and see an increase of Rs 562 in monthly bill.

Those consuming up to 3 hm3 of natural gas will have a revised tariff at Rs 1,000 per MMBtu and the monthly bill will surge by Rs 2,000.

Similarly, the burning of gas up to 4 hm3 will surge the bills by Rs 5,000 as the tariff will be changed to Rs 1,500 per MMBtu.

Above 4 hm3, the tariff will become Rs 2,000 per MMBtu and the consumers will have to pay up to Rs 9,000 extra.