ISLAMABAD: If Prime Minister Shehbaz Sharif approves, the government would increase the tariff for the nation’s cash-strapped gas utilities.The choice to seek the premier’s consent was made at a meeting in the federal capital that was presided over by Finance Minister Ishaq Dar.
Former Prime Minister Shahid Khaqan Abbasi, State Ministers for Finance and Revenue Dr. Ayesha Ghous Pasha, State Minister for Petroleum Musadik Malik, Special Assistant to the Prime Minister Tariq Bajwa, Secretaries of Finance and Petroleum, and other Senior Officers also attended.
Gas prices have not increased for the past three to four years, which has put Sui Northern and Sui Southern under a heavy financial burden of Rs600-700 billion.According to sources, neither of the firms is able to buy gas for Rs1,000 per unit and sell it for Rs589.52 per MMBTU.
One of the attendees of the meeting recalled, “It was agreed in the meeting that a special presentation would be made to Prime Minister Shehbaz Sharif seeking his agreement to increase prices to provide financial assistance to both the gas firms.”
The conference opted to exempt gas users who use little gas each month from the rise after debating a number of price-hike options, the official claimed.Only those who consume the most gas should be subject to additional fees, too.
To that purpose, a full presentation based on the options chosen during the meeting would be given, and the PM would then be asked to approve it.The subject would then be brought up by the Petroleum Division for the Economic Coordination Committee’s (ECC) approval before being submitted to the federal cabinet for formal notice.
