Economic Coordination Committee approves hike in gas prices

The Economic Coordination Committee (ECC), chaired by Finance Minister Asad Umar, approved on Monday hike in gas prices.

As per local media reports, a new tariff slab for sale of gas was also introduced during the fourth meeting of ECC today. The finance minister was of the view that the masses have been burdened the least. Furthermore, the import tax on Liquefied Petroleum Gas (LPG) was decreased to 10 percent.

The government has now introduced seven rate slabs, as compared to three slabs used previously:

• Domestic gas consumers using 50 meters will see an increase of 10 per cent. The new rate per month will be Rs 275 from the old rate of Rs 252.
• Domestic gas consumers using 100 Cubic Meters (CM) will see a rise of 15pc and the new rate per month will be Rs 551 from old rate of Rs 480.
• Domestic gas consumers using 200 CM will see a rise of 19pc and the new rate per month will be Rs 2,216 from the old rate of Rs 1,851.
• Domestic gas consumers using 300 CM will see a rise of 25 per cent. New rate per month will be Rs 3,449 from old rate to Rs 2,764.
• Domestic gas consumers using 400 CM will see a rise of 30 per cent. New rate per month will be Rs 12,980 from old rate of Rs 9,990.
• Domestic gas consumers using up to 500 CM will see a rise of 143 per cent. New rate per month will be Rs 30,339 from old rate of Rs 12,482.
• Domestic gas consumers using over 500 CM will see rise of143 per cent. New rate per month will be Rs36,402 from old rate of Rs 14,973.

In its previous meeting on September 10, the ECC had decided to keep the gas price unchanged. The Information Minister Fawad Chaudhry told the media after the previous ECC meeting that the new system of subsidy on gas price will be finalized by Prime Minister Imran Khan. Moreover, the minister assured to launch a crackdown against the 70 percent hike on the price of a LPG cylinder.

The 12-member ECC consists of Law Minister Farogh Naseem, Petroleum Minister Ghulam Abbasi, Planning and Development Minister Khusro Bakhtiar and Railways Minister Sheikh Rashid. It also include prime minister's advisers Razak Dawood and economist Dr Ishrat Hussain.