In a move that has stirred public outcry, the caretaker government has greenlit a 67% increase in gas prices, effectively burdening consumers with higher costs of living starting from February 1.
The decision, approved in a meeting of the federal cabinet led by caretaker Prime Minister Anwarul Haq Kakar, follows the recommendation of the Economic Coordination Committee (ECC) to raise gas prices by a staggering 67%. This sharp hike in rates will apply to both protected and non-protected customers, translating to a surge of Rs100 and Rs300 per MMBTU (million British thermal units), respectively.
Notably, while the increase will apply to consumption charges, there will be no increase in fixed charges for both categories of consumers. However, bulk gas consumers will bear the brunt of a significant surge, facing a whopping increase of Rs900 per MMBTU.
Also Read: Potential increase in petrol, diesel prices from Feb 16
Furthermore, the CNG sector is set to face its own set of challenges, with prices anticipated to surge by Rs170 per MMBTU. Collectively, these price hikes are expected to impose an additional burden of Rs204 billion on all consumers.
The decision has sparked widespread criticism, with many decrying the government's imposition of further financial strain on an already beleaguered populace. As citizens brace for the impact of increased gas prices on their household budgets, concerns mount over the potential escalation of inflationary pressures across the economy.
Also Read: Gas prices set to rise further for all consumers
As the caretaker government drops a gas bomb on consumers within just days of its departure, it is also expected to raise the price of petroleum products as per the fortnightly adjustments.
The possibility of an increase in petrol and diesel prices today is being considered due to fluctuations in global oil prices.
Following a hike of Rs13.55 per liter in petrol prices from February 1, authorities are now contemplating an increase in the price of high-speed diesel.
The government has decided to increase the price of high-speed diesel by Rs8 per liter, effective from February 16. Additionally, a moderate increase of 80 paise per liter may also be observed in petrol prices.
The increase in high-speed diesel prices is attributed to fluctuations in global oil prices.
