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Pakistan okays 50 percent increase in fixed gas charges for domestic consumers

Pakistan okays 50 percent increase in fixed gas charges for domestic consumers

Arab News2 days ago

ISLAMABAD: The Pakistani government has revised gas prices for the fiscal year 2025-26 and okayed a 50 percent increase in fixed charges for domestic consumers, effective from July 1, the Oil and Gas Regulatory Authority (OGRA) announced on Sunday.
The development comes days after the federal cabinet's Economic Coordination Committee (ECC) approved the hike in fixed gas charges for domestic users and to shift the partial burden to bulk consumers, like the power sector and industry.
'Protected category to pay a fixed charge of Rs600 and meter rent of Rs40,' an OGRA notification said on Sunday. 'Non-protected category to pay a fixed charge of Rs1,500, up to 1.5hm³ (cubic hectometers), while Rs3,000 for exceeding consumption of 1.5hm³ and meter rent of Rs40.'
While the government has increased the fixed charges, the sale prices of gas for both protected and non-protected consumers remain unchanged, according to the notification.
The government also kept prices for tandoors commercial units, compressed natural gas and ice factories unchanged, but increased the rates for general industries, power stations and independent power producers.
The move aligns with structural benchmarks agreed with the International Monetary Fund (IMF), including rationalization of captive power tariffs and a shift from subsidies to direct, targeted support for low-income consumers.

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