Spiralling tariffs: Electric shock for domestic consumers
Govt increases power tariffs by almost 30%, fuel prices by 4.2%.
An official said that the Prime minister has approved a subsidy of Rs 2 per litre on High Speed Diesel (HSD) and petrol to provide relief to consumers.
ISLAMABAD:
When sorrows come, they don’t come as single spies but in battalions. For terror-struck, war-weary Pakistani consumers Hamlet’s words couldn’t have rung truer.
On Monday, the pain of higher electricity tariffs -- by as much as 30% -- was compounded by a 4.2% oil price hike, sending the average citizen into deep economic shock.
The latest surge in power tariff is set to impact domestic consumers with those using 200-300 units facing a 72.6 per cent increase in rates from Rs8.11 to Rs14 per unit. Similarly, consumers using 201-300 units per month across the country and 301-700 units of electricity will now face a 30% increase in the power rate from Rs12.33 per unit to Rs 16 per unit.
Worst hit still are those high end consumers who use more than 700 units of electricity per month. With a withdrawal of concessionary rates at lower slabs, such high end consumers will now have to pay Rs18 per unit instead of Rs15.07 per unit starting this month.
The new rates, to be effective from October 1 (today), come as the government stringently follows the structural reforms agreed with the International Monetary Fund (IMF) against the Extended Fund Facility loan amounting to $6.67 billion.
Under the reforms plan, the federal government had agreed to phase out subsidies in the power sector. To achieve this target, a four-phase plan has been tailored to reduce subsidies from about 1.8% of GDP to 0.3-0.4% of GDP within the next three years. Under the first phase, the government had already increased power tariffs for industrial and commercial consumers from August 1.
The latest increase in power tariff for domestic consumers using over 200 units of electricity per month is reported to be the second phase of the subsidy reduction plan.
Talking about the development, an official said that the government is likely to generate Rs162 billion additional revenue from current power tariff increases with the latest tariff hike contributing Rs 74 billion under the head of domestic and agriculture consumers, Azad Jammu and Kashmir and Pakistan Railways.
The remaining Rs87 billion will be raised in revenue through the earlier August 1 increase in power rates for industrial and commercial consumers.
“The government gave a Rs362 billion subsidy to consumers last year and the financial impact of current increase has been estimated at Rs162 billion which implies domestic consumers still enjoy a subsidy of Rs200 billion,” said the official.
Additionally, the tariff for Azad Jammu and Kashmir has been hiked to Rs14 per unit from the existing rate of Rs12.22 per unit. For peak load requirement exceeding 20 KV, Time of Day (Peak) tariff has been increased by 19.44% from Rs 13.99 to Rs18 per unit, Time of Day (off-peak) from Rs 8.22 to Rs 12.50 per unit.
However, tariff for consumers who use 50 units, 100 units and 200 units in a month will be Rs2 per unit, Rs5.79 per unit and Rs8.11 per unit respectively as there will be no change in the electricity rates for these consumers.
Tariff for agriculture consumer has been fixed at Rs10.35 per unit against Rs11.51 per unit and fixed charges on agriculture meters have also been slashed from Rs200 to Rs120 per month.
Oil prices increased
The government on Monday increased the price of petrol by Rs4.12 per litre and High Speed Diesel by Rs4.69 per litre.
Petrol price has been increased to Rs113.24 per litre from Rs109.13, while the price of high-speed diesel, which is mostly used in cargo and passenger vehicles as well as in agriculture, has been increased to Rs116.95 per litre from the existing Rs112.26.
The price of kerosene oil, which is consumed for cooking in remote areas where liquefied petroleum gas is not readily available, has been increased by Rs2.14 while light diesel oil, mainly used for industrial purposes, has been increased by Rs2.81.
Similarly, the price of high octane blending component (HOBC) has also increased to Rs143.90 per litre compared to existing Rs138.33.
Meanwhile, an official has said that the prime minister has approved a subsidy of Rs 2 per litre on High Speed Diesel (HSD) and petrol to provide relief to consumers.
Published in The Express Tribune, October 1st, 2013.
When sorrows come, they don’t come as single spies but in battalions. For terror-struck, war-weary Pakistani consumers Hamlet’s words couldn’t have rung truer.
On Monday, the pain of higher electricity tariffs -- by as much as 30% -- was compounded by a 4.2% oil price hike, sending the average citizen into deep economic shock.
The latest surge in power tariff is set to impact domestic consumers with those using 200-300 units facing a 72.6 per cent increase in rates from Rs8.11 to Rs14 per unit. Similarly, consumers using 201-300 units per month across the country and 301-700 units of electricity will now face a 30% increase in the power rate from Rs12.33 per unit to Rs 16 per unit.
Worst hit still are those high end consumers who use more than 700 units of electricity per month. With a withdrawal of concessionary rates at lower slabs, such high end consumers will now have to pay Rs18 per unit instead of Rs15.07 per unit starting this month.
The new rates, to be effective from October 1 (today), come as the government stringently follows the structural reforms agreed with the International Monetary Fund (IMF) against the Extended Fund Facility loan amounting to $6.67 billion.
Under the reforms plan, the federal government had agreed to phase out subsidies in the power sector. To achieve this target, a four-phase plan has been tailored to reduce subsidies from about 1.8% of GDP to 0.3-0.4% of GDP within the next three years. Under the first phase, the government had already increased power tariffs for industrial and commercial consumers from August 1.
The latest increase in power tariff for domestic consumers using over 200 units of electricity per month is reported to be the second phase of the subsidy reduction plan.
Talking about the development, an official said that the government is likely to generate Rs162 billion additional revenue from current power tariff increases with the latest tariff hike contributing Rs 74 billion under the head of domestic and agriculture consumers, Azad Jammu and Kashmir and Pakistan Railways.
The remaining Rs87 billion will be raised in revenue through the earlier August 1 increase in power rates for industrial and commercial consumers.
“The government gave a Rs362 billion subsidy to consumers last year and the financial impact of current increase has been estimated at Rs162 billion which implies domestic consumers still enjoy a subsidy of Rs200 billion,” said the official.
Additionally, the tariff for Azad Jammu and Kashmir has been hiked to Rs14 per unit from the existing rate of Rs12.22 per unit. For peak load requirement exceeding 20 KV, Time of Day (Peak) tariff has been increased by 19.44% from Rs 13.99 to Rs18 per unit, Time of Day (off-peak) from Rs 8.22 to Rs 12.50 per unit.
However, tariff for consumers who use 50 units, 100 units and 200 units in a month will be Rs2 per unit, Rs5.79 per unit and Rs8.11 per unit respectively as there will be no change in the electricity rates for these consumers.
Tariff for agriculture consumer has been fixed at Rs10.35 per unit against Rs11.51 per unit and fixed charges on agriculture meters have also been slashed from Rs200 to Rs120 per month.
Oil prices increased
The government on Monday increased the price of petrol by Rs4.12 per litre and High Speed Diesel by Rs4.69 per litre.
Petrol price has been increased to Rs113.24 per litre from Rs109.13, while the price of high-speed diesel, which is mostly used in cargo and passenger vehicles as well as in agriculture, has been increased to Rs116.95 per litre from the existing Rs112.26.
The price of kerosene oil, which is consumed for cooking in remote areas where liquefied petroleum gas is not readily available, has been increased by Rs2.14 while light diesel oil, mainly used for industrial purposes, has been increased by Rs2.81.
Similarly, the price of high octane blending component (HOBC) has also increased to Rs143.90 per litre compared to existing Rs138.33.
Meanwhile, an official has said that the prime minister has approved a subsidy of Rs 2 per litre on High Speed Diesel (HSD) and petrol to provide relief to consumers.
Published in The Express Tribune, October 1st, 2013.