The Petroleum Division (PD) on Wednesday rejected media reports that suggested the higher gas tariff was with effect from July 1, clarifying the revised prices would be applicable from November 1, 2023.
“It is to be categorically stated that gas price revision is effective from November 01,2023,” read the notice.
“This was made clear in the first press release issued by the Petroleum Division after the approval from cabinet and ECC. Reports in some newspapers claiming the prices are effective from back date are misleading,” it added.
The government on Monday approved an increase in the price of natural gas for different categories of consumers as advised by the Oil and Gas Regulatory Authority (OGRA) with effect from 1st November 2023.
The Economic Coordination Committee (ECC) of the Cabinet on 23rd October 2023 considered the summary submitted by the Petroleum Division and approved the increase in the natural gas prices. The Federal Cabinet in its meeting held on 30th October, 2023 referred back the summary for reconsideration of the ECC.
The ECC in its meeting held on 30th October 2023 then approved the revised natural gas prices.
Meanwhile, the government believes that its decision to raise gas tariffs will help address the economic ills of the country.
Addressing a press conference, while sitting alongside Caretaker Minister for Information Murtaza Solangi, Caretaker Minister for Energy and Petroleum Muhammad Ali on Tuesday said that the decision to increase gas tariffs was a difficult one, but much-needed for the stake of the country.
“In the past, governments have shied away from increasing gas prices,” he said.
The minister shared OGRA’s revenue requirement for this year stands at Rs697 billion, whereas Re-gasified Liquid Natural Gas (RLNG) diversion to the domestic segment stands at Rs210 billion.
The interim minister said that due to mounting losses, the government was not in a position to invest in the exploration of new reserves, thus the country became more dependent on imported fuels, which ballooned the import bill.
“Moreover, the rising fiscal deficit on account of import payments drove interest rate and inflation in Pakistan. Therefore, these steps will mitigate inflation and lower interest rates,” said Ali.
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