Hike in gas tariffs delayed upon PM Imran's intervention
Last updated on: 21 January,2020 01:04 pm
Political analysts have considered wheat flour crisis as a reason for the premier's intervention.
ISLAMABAD (Dunya News) – Upon Prime Minister Imran Khan’s intervention in a decision that was expected to be taken by the Economic Coordination Committee (ECC) of the federal cabinet in its yesterday’s meeting in Islamabad for a massive increase of up to 191 percent in gas tariffs, the decision has been postponed.
Political analysts have considered wheat flour crisis as a reason for the premier’s intervention in the matter. The OGRA had recommended an increase of up to 191 percent in gas tariffs.
It is pertinent to mention that the government had assured the International Monetary Fund (IMF) of the increase in gas tariffs.
Yesterday, Advisor to the Prime Minister on Finance Abdul Hafeez Shaikh chaired a meeting of the ECC that deliberated on a six-point agenda in its session, particularly concerning the shortage of wheat flour and wheat supply to the mills and gas tariffs.
A summary for raising gas tariff by 191 percent was forwarded to the ECC for approval. A significant increase from Rs20 to Rs80 as meter rent for domestic consumers was proposed.
The summary also sought increases in gas tariffs by 214pc for the Sui Southern Gas Company (SSGC) and 192pc for the Sui Northern Gas Pipelines Limited (SNGPL).
It also proposed a rise of up to 245pc for the special commercial consumers, 221pc increase for commercial consumers of the SNGPL and 153pc for fertiliser sector.
Furthermore, it proposed a 32 percent increase in gas tariff for captive power plants that would have serious implications on the productivity of leading export oriented sectors, and the CNG sector.
The proposal sought to raise the prices with effect from Feb. 1, 2020. OGRA had on Dec. 11 last year decided to increase the gas tariffs.