Gas prices in Pakistan are anticipated to witness a significant increase in the coming weeks, just ahead of the International Monetary Fund's (IMF) economic review.
The Ministry of Petroleum has prepared a summary proposing the hike, which could see gas prices soaring from Rs302 to Rs600 per MMBtu.
Industry sources suggest that this impending price hike will have far-reaching consequences, particularly for fertilizer factories that rely on gas as a crucial feedstock for their operations.
Fertilizer manufacturers may face a considerable surge in costs as they are expected to secure gas at a rate of Rs 1580 per MMBtu, a substantial increase from the current rates.
Furthermore, there is a looming possibility of a Rs556 increase in the price of gas for fertilizer factories.
The decision to implement the gas price hike in October instead of June, as initially proposed, has stirred discussions and concerns among various stakeholders. The timing of the increase coinciding with the IMF's economic review raises questions about its potential impact on the country's economic stability and the challenges it may pose for Pakistan's negotiations with international financial institutions.
While the Ministry of Petroleum has not officially confirmed the gas price hike, industry insiders believe that the move is imminent and could have far-reaching consequences for both businesses and consumers.
