No relief in gas prices from the federal government. has been granted to consumers in the annual budget. The Oil and Gas Regulatory Authority (OGRA) had decided to provide 10% relief in gas tariffs, but the government continued its decision to increase gas prices by hiking prices from 250 mmBTU to 3000 mmBTU for all central power plants. This rate will be applicable as of July 1, 2024.
The decision has been taken to increase gas prices based on the recommendations of the IMF to reduce the circular debt by using the revenue collected from gas bills. The government expects to collect 110–115 billion per year with this hike.
The IMF criticized CPP’s for low efficiency and wasting 30–35% of natural gas every month, and to reduce this wastage, the IMF further instructed the government to connect CPP’s with national electricity plants and elevate gas prices again on January 1, 2025, to prevent further loss of natural gas.
