The caretaker government is set to announce a gas price increase in response to the IMF's request. Previously, the PDM government had postponed a decision on raising gas prices.
The IMF has urged a 45% hike in gas prices to generate 435 billion rupees in revenue, showing little flexibility on this demand. However, the government plans to shield 64% of gas consumers, particularly small consumers, from the price increase.
The gas tariff increase is expected to be officially announced soon and will be retroactively applied from July 1st. Consumers will need to settle their arrears from July to September bills, and this hike will also impact domestic consumers with higher gas consumption. Commercial consumers, such as bakeries and hotels, are likely to face increased rates, along with industrial consumers, CNG stations, fertilizer plants, and the steel industry.
The IMF's demand primarily focuses on a 45% to 50% increase in gas tariffs due to 'Fuel Adjustment Charges' starting from July 1st. Additionally, there's an emphasis on cracking down on electricity and gas theft to enhance revenue recovery.
