Effective August 1, the Economic Coordination Committee (ECC) of the Cabinet raised the price of imported and domestic gas by more than 38% and 82%, respectively, for the export industry. Additionally, the ECC protected power prices at 9 cents per unit for 11 months.
At the ECC meeting, presided over by Finance Minister Miftah Ismail, Naveed Qamar, and Industries & Production Minister Syed Murtaza Mehmood, along with former Prime Minister Shahid Khaqan Abbasi, Defense Minister Khwaja Asif, Power Minister Khurram Dastgir Khan, and State Ministers for Finance and Petroleum Dr. Aisha Ghous Pasha and Musadik Malik, attended the ECC meeting.
According to an official statement, the ECC “approved RLNG rate at $9 per mmBtu, all-inclusive to five export-oriented sectors across Pakistan for existing gas connections,” and the ECC also recommended to the federal cabinet that the tariff of indigenous gas be raised to Rs1,350 per mmBtu for export-oriented sectors and to Rs1,550 per mmBtu for general industry. The majority of these hikes, 65 percent and 82 percent respectively, will be felt in Sindh, where the present export price stands at Rs820 per mmBtu and the general industry price sits at Rs853 per mmBtu.
Current RLNG pricing stands at $6.5 per mmBtu, and it is being provided to five export industries including jute, leather, carpet, surgical, and sports products. A total of roughly 38.5% is added on to the original amount. In the government budget for 2022-23, RLNG has been allotted a subsidy cover of Rs
Similarly, the ECC approved a rate of US$0.09 per kWh for electricity used in five export-oriented sectors beginning August 1, contingent upon a Rs 20bn subsidy provided by the Finance Division in the budget, quarterly review of the subsidy, and provision of a list by the Petroleum Division of industrial units receiving subsidised gas and electricity, all within one month of the ECC’s review.
To continue supplying power at a final all-inclusive rate of US cents 9 per unit to five export-oriented sectors, regionally competitive energy tariffs were finalized in conjunction with commerce, energy, and finance ministries and the export sectors, as reported at the conference.
Two, from July 1 through June 30 of 2023, all of Pakistan will be charged the same uniform rate of $9 per mmBtu (also all-inclusive) for liquefied natural gas (RLNG) that is imported from outside suppliers. This means that the same concessionary pricing that applies to Sui Northern Gas Pipelines Ltd (SNGPL) customers in five export sectors in Lahore will also apply to Sui Southern Gas Company Ltd (SSGCL) customers in Karachi.
The ECC also gave the Ministry of Information and Broadcasting Rs750 million as supplemental funding for the Independence Day celebrations, which will take place on August 4. The meeting also voted to have the Ministry of the Interior pay for the compensation/goodwill package out of its funds, as proposed by the ministry.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
