Islamabad

Following a significant increase in gas prices by the federal government, consumers will have to pay gas tariff hike for the last four months -July till October, source reported.

Given that there has been a total loss of (PKR) 65 billion over the last four months, the federal government has determined that consumers will have to pay the increased petrol prices from July of this year.

In addition to the price increases from July to October, the gas tariff increase will take effect in November.

Notably, a significant increase in petrol prices was announced by the federal government, which said that the price hike would go into effect from November 1. However, the government has now decided to add the losses of PKR 65 billion and recover it by asking the consumers to pay the hiked tariff from July of this year (which is four months).

Regarding the significant increase in petrol prices for domestic, export and non-export units, CNG, cement and other industries, the Petroleum Division released a notification.

Protected customers who use 25 to 90 cubic metres of petrol per month did not see a price increase for the fuel, but their fixed costs did climb from PKR 10 to PKR 400. According to the notice, domestic users who are not covered by insurance had their petrol costs increased by more than 172 per cent, source reported.

The Cabinet’s Economic Coordination Committee (ECC) approved a number of summaries on October 23, including one that revised the price of natural gas, according to source.