Islamabad February 13 2023: Economic Coordination Committee (ECC) approved increase in gas price up to 123 percent for customers across different sectors while kept prices un changed for one category of protected residential customers and Roti Tandoor while decrease prices for two categories of protected consumer in today meeting.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet, today.
Ministry of Energy ( Petroleum Division) tabled a summary on Natural Gas Sale Pricing FY 2022-23 and presented tariff proposals for all consumer categories in accordance with RERR FY 2022-23. The ECC after detailed discussion approved gas price revision proposal for domestic, commercial and power sectors for six months i-e January to June, 2023.
There is no increase in gas prices for protected customers that use gas up to 0.25 hm3, 24 percent increase for usage up to 0.5 hm3 while decrease prices by 33 percent and 16 percent for protected customers using gas up to 0.6 hm3 and 0.9hm3, respectively.
ECC kept gas prices un changed at PKR 121/mmbtu for protected customers using gas up to 0.25 hm3 and increase gas prices from PKR 121/mmbtu to PKR 150/mmbtu for customers using gas up ot 0.5 hm3. ECC approved decrease in gas prices to PKR 200/mmbtu and PKR 250/mmbtu from PKR 300/mmbtu for customers using gas up to 0.6 hm3 and 0.9 hm3.
For non protected residential consumers there is an increase of 33 percent for gas consumption of 1 hm3, 8 percent increase for usage up to 1.5 hm3, increase in prices by 45 percent for consumption of gas up to 2 hm3, 49 percent for customers consuming gas up to 3 hm3, 81 percent for consumption up to 4 hm3 and 112 percent for consumption above 4 hm3.
For non protected residential consumers gas prices increased from PKR 300/mmbtu to PKR 400/mmbtu for gas consumption of 1 hm3, from PKR 553/mmbtu to PKR 600/mmbtu for usage up to 1.5 hm3, from PKR 553/mmbtu to PKR 800/mmbtu for consumption of gas up to 2 hm3, from PKR 738/mmbtu to PKR 1,100/mmbtu for customers consuming gas up to 3 hm3, from PKR 1,107/mmbtu to PKR 2,000/mmbtu for consumption up to 4 hm3 and from PKR 1,460/mmbtu to PKR 3,100/mmbtu for consumption above 4 hm3.
There is no increase in prices for Roti Tandoor for which gas prices remain unchanged at PKR 697/mmbtu.
Government has increased gas price for commercial user by 29 percent to PKR 1650/mmbtu, for exporters by 34 percent to PKR 1100/mmbtu, for general industries up by 13.9 percent to PKR 1200/mmbtu, for CNG up by 32 percent to PKR 1805/mmbtu and for cement companies up by 15 percent to PKR 1500/mmbtu.
For Fertilizer feed gas revised rate will be PKR 510/mmbtu and fertilizer fuel will be PKR 1,500/mmbtu.
Ministry of Economic Affairs presented a summary on G-20 Debt Service Suspension Initiative (DSSI). This debt relief was announced in April 2020 for IDA eligible countries to mitigate the socio-economic impact of Covid-19. Under this initiative debt relief was extended through the suspension of principle and interest payments. So far, 37 debt rescheduling agreements with 15 creditor countries have been signed. Foregoing in view, the ECC allowed the Ministry of Economic Affairs for signing of debt rescheduling agreement with Russia for debt suspension of Covid related amount US$ 14.53 million.
Ministry of Poverty Alleviation and Social Safety presented a summary on enhancement of BSIP budget. The meeting was briefed on the on-going BISP programmes including Unconditional Cash Transfer (UCT) Programme “Benazir Kafaalat” covering around 9 million families, two Conditional Cash Transfer (CCT) programmes namely Benazir Taleemi Wazaif and Benazir Nashonuma. Besides. This disbursement of cash assistance to affectees of floods as emergency relief of Rs. 25,000/- was provide per affected family to around 2.7 million families. In Conditional Cash Transfer Programme, there has been accelerated enrolments in Benazir Taleemi Wazaif and it is anticipated that additional 1 million children will be enrolled by the end of June, 2023. Also BISP has extended CCT Benazir Nashonuma to all the districts of the country. The ECC after discussion granted Rs. 40 billion as Technical Supplementary Grant to BISP to meet its budgetary requirements for increase in the unconditional and conditional grants.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Mr. Khurram Dastgir Khan, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Mr. Shahid Khaqan Abbasi MNA/Ex-PM, SAPM on Finance Mr. Tariq Bajwa, Federal Secretaries and other senior officers attended the meeting in person while Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Petroleum Mr. Musadik Masood Malik and Governor SBP attended the meeting virtually through video link.
