And now gas prices

The ECC of the Cabinet has approved an increase in natural gas prices in the range of 43% to 235%

The Economic Coordination Committee of the Cabinet has approved an increase in natural gas prices in the range of 43% to 235% with effect from July 1 to generate around Rs660 billion in revenue and provide relief to the two gas utilities — SNGPL and SSGCL — in an attempt to make up for previous year’s losses. The unprecedented hike in price is a necessary step the government has to take in order to cope with the current economic condition and minimise the effect that the IMF loan conditionalities are having on major industries.

Industrial consumers will take the hit as the new rates — though reduced by Rs100 per unit for export and non-export sectors — are still 58% higher. This is bound to increase the prices of local commodities. The decision will indeed add to the plight of residential consumers, and those in the lowest slab of 50 cubic metres will witness a 43% increase in gas rates — meaning a minimum 36% increase in gas bills. Power tariff and petrol prices have already been jacked up and now the government has come full circle by increasing gas prices. This might very well be the final nail in the coffin. Citizens are struggling to make ends meet while economic conditions are forcing the government’s hand to make tough decisions. Officials must seriously sit down and chart out a relief plan for citizens who are facing more than they can bear.

The long-term solution is in realising the need for developing sustainable energy and investing in it. Alternative renewable forms of energy need to be streamlined to provide relief to the people and the heavily-burdened energy sector. For some time, Pakistan must think of moving to a hybrid energy production system where conventional as well as sustainable energy is produced and supplied accordingly.

Published in The Express Tribune, July 10^th, 2022.

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