Petroleum Division proposes up to 35% hike in gas prices

• Sources say the proposed hike in prices is for domestic consumers of gas for a period of four months.
• No increase in gas price has been proposed for the consumers falling under the first two slabs.
• Final decision in this regard will be taken by the federal cabinet.

ISLAMABAD: The Petroleum Division on Saturday proposed an increase in gas prices by 35% for domestic consumers.

Sources told Geo News the proposal is for four months — from November to February.

The sources added that no increase in gas price has been proposed for consumers falling under the first two slabs.

According to the sources, a 35% increase in gas tariff has been proposed for consumers falling under the last four slabs.

Consumers who use more than 200 to 400 MMBTU gas within the price range of Rs553 to Rs1,460 per month fall under the last four slabs.

"No decision has been taken on the price hike. A final decision will be taken by the federal cabinet," the sources said.

Last week, the Cabinet Committee on Energy (CCoE) approved the Power Division’s summary on the winter incentive package on incremental consumption for all domestic, commercial, and general services consumers of ex-Wapda distribution companies and K-Electric from November 1, 2021 till February 28, 2022.

The incentive power package would help reduce gas demand in winter and ease the burden on the national exchequer.

During the meeting, the Petroleum division had submitted the summary of Revision of Gas Tariff Slabs for domestic consumers during winter season 2021-22.

The division had proposed an increase in gas prices for consumers using a higher volume of gas while insulating the low volume gas consumers from this increase.