ECC of the Cabinet approves gas price revision proposal for domestic, commercial & power sectors for six months
Grants Rs. 40 biln as Technical Supplementary Grant to BISP to meet its budgetary requirements for increase in unconditional & conditional grants
ISLAMABAD ( Web News )
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet on Monday.
The Economic Coordination Committee (ECC) of the Cabinet approved up to 335 per cent increase in consumer-end gas prices on Thursday with effect from July 1 to generate about Rs.666 billion in revenue for two gas utilities during the current fiscal year.
The increase would allow Rs.120bn surplus revenue to the two gas utilities — Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) — over and above Rs.546 bn determined by the Oil and Gas Regulatory Authority (Ogra) during the current fiscal year on the request of the petroleum division to make up for the partial recovery of previous year’s losses.
The revised rates would be notified after the ratification by the federal cabinet soon after Eidul Azha, as these have to be legally in place by July 13 under the law.
Under the decision, gas rates for the lowest residential slab of up to 50 cubic metres would be charged at Rs.171 per mmBtu, showing an increase of 43pc over the existing rate of Rs.121 per unit. The monthly bills of these consumers would go up by 36pc. The next slab of 100 cubic metres would remain unchanged at Rs.300 per unit.
The third slab (200 cubic metres) and fourth slab (300 cubic metres) would jump 26pc and 151pc to Rs.696 and Rs.1,856 per unit.
The last existing slabs have been merged into one for all consumers with monthly consumption of 400 cubic metres and would be charged at the same rate of Rs.3,712 per unit — almost the cost of LNG. Those consuming up to 400 cubic metres were currently charged at Rs.1,107 per unit who would now face an increase of 335pc and their bills would jump by 346pc.
The rate for above 400 cubic meters was currently charged at Rs.1,460 per unit, which would now face a 154pc increase to Rs.3,712 per unit.
Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Engineer Khurram Dastgir Khan, Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Shahid Khaqan Abbasi MNA/Ex-PM, SAPM on Finance Tariq Bajwa, Federal Secretaries and other senior officers attended the meeting in person while Federal Minister for Industries and Production Syed Murtaza Mahmud, Minister of State for Petroleum senator Dr. Musadik Masood Malik and Governor SBP attended the meeting virtually through video link.
Ministry of Energy (Petroleum Division) tabled a summary on Natural Gas Sale Pricing FY 2022-23 and presented tariff proposals for all consumer categories in accordance with RERR FY 2022-23. The ECC after detailed discussion approved gas price revision proposal for domestic, commercial and power sectors for six months i-e January to June, 2023.
Ministry of Economic Affairs presented a summary on G-20 Debt Service Suspension Initiative (DSSI). This debt relief was announced in April 2020 for IDA eligible countries to mitigate the socio-economic impact of Covid-19. Under this initiative debt relief was extended through the suspension of principle and interest payments. So far, 37 debt rescheduling agreements with 15 creditor countries have been signed. Foregoing in view, the ECC allowed the Ministry of Economic Affairs for signing of debt rescheduling agreement with Russia for debt suspension of Covid related amount US$ 14.53 million.
Ministry of Poverty Alleviation and Social Safety presented a summary on enhancement of BSIP budget. The meeting was briefed on the on-going BISP programmes including Unconditional Cash Transfer (UCT) Programme “Benazir Kafaalat” covering around 9 million families, two Conditional Cash Transfer (CCT) programmes namely Benazir Taleemi Wazaif and Benazir Nashonuma. Besides, this disbursement of cash assistance to affectees of floods as emergency relief of Rs. 25,000/- was provide per affected family to around 2.7 million families. In Conditional Cash Transfer Programme, there has been accelerated enrolments in Benazir Taleemi Wazaif and it is anticipated that additional 1 million children will be enrolled by the end of June, 2023. Also BISP has extended CCT Benazir Nashonuma to all the districts of the country. The ECC after discussion granted Rs. 40 billion as Technical Supplementary Grant to BISP to meet its budgetary requirements for increase in the unconditional and conditional grants.