ECC okays massive gas price hike

• ECC green-lights slight increase in tariff for protected consumers. 
• Only finance, energy ministers know exact hike in gas tariff. 
• Roti tandoor, commercial, power sector exempted from hike. 

ISLAMABAD: Amid the ongoing economic crisis, the caretaker government on Wednesday burdened the masses with another gas price hike on the International Monetary Fund’s (IMF) demand.

According to a The News report published today, the Economic Coordination Committee (ECC), which met under the chair of Finance Minister Dr Shamshad Akhtar, has also green-lighted a slight increase in the tariff for the protected consumers against the proposed hike by 40 to 66.67%.

Only the interim finance minister and energy minister know the exact hike in gas tariff of the protected consumers, the report said. The protected consumers fall in the first four slabs and utilise gas up to 0.25 HM3, 0.5 HM3, 0.6HM3 and 0.9hm3.

The final decision in this regard will be taken by the federal cabinet, a senior official who was part of the meeting told the publication.

“The impact of a reduction in proposed tariff of protected consumers has been passed on to the fertiliser sector.” However, the said changes will be pitched to the federal cabinet which may meet today (Thursday) for approval.

The tariff was hiked to meet the deadline of the IMF for hiking the gas prices under structural benchmark criteria till February 15, 2024.

However, as per the summary of the Petroleum Division, for roti tandoor, commercial, power sector and cement sector there would be no hike in the gas tariff.

The ECC approved the increase in gas tariff of CNG to Rs3,750 per MMBTU from Rs3,600 per MMBTU while for the fertiliser sector, the gas price of Engro and Fauji fertilisers for feed purposes has been suggested in the summary at Rs750 per MMBTU.

However, the impact of the reduction in the proposed increase in protected domestic consumers would also be passed on to these fertiliser plants.

For Agritech and Fatima fertiliser, the gas price has been increased to Rs1,597 from Rs1,239 per MMBTU and for fuel purposes, their tariff has been increased to Rs1,750 from Rs1,580 per MMBTU.

However, for non-protected domestic consumers, the ECC has approved the increase in gas prices by 5 to 66.67%. Those non-protected consumers who use gas up to 0.25hm3 will now pay an increase in gas tariff by 66.67% to Rs500 per MMBTU instead of the existing Rs300 per MMBTU.

The consumer who uses 0.6hm3 will face an increase of 41.7% in tariff to Rs850 per MMBTU from Rs600 per MMBTU. Those who use 1hm3 in a month will now pay Rs1,250 per unit from the existing Rs1,000 per MMBTU with an increase of 25%. The domestic consumer who utilises 1.5 hm3 a month would face an increase of 29.17% as their tariff has been increased to Rs1,550 per MMBTU from the existing Rs1,200.

Those consumers who consume gas up to 2hm3 will experience an increase in the gas price of 21.87% as their tariff has been increased to Rs1,950 from Rs1,600 per unit.

The ECC increased the gas price of those who use gas up to 3hm3 by 10% to Rs3,300 from Rs3,000 per MMBTU and those who use gas a month 4 hm3 will face an increase of 8.57% to Rs3,800 from Rs3,500 per MMBTU and those who utilise gas of over 4hm3 will face an increase of 5% to Rs4,200 from Rs4,000 per MMBTU.

25% sales tax on locally manufactured cars

Moreover, the also ECC considered a proposal from the Federal Board of Revenue (FBR) regarding the “Rationalisation of Criterion of Enhanced Rate of 25% Sales Tax on Locally Manufactured/ Assembled Vehicles (PCT87.03)”.

The summary was approved after a detailed discussion by the participants.