Domestic stoves to light up 8 hours/day in winter amid increase in gas tariffs

Pakistani Gas consumers should be ready for restrictions in gas supply. The gas in winter season will be available for only eight hours daily in the morning, at noon and in the evening. Ban on new gas connections will continue.The Caretaker Federal Minister for Energy Muhammad Ali said that only 30% households of Pakistan are availing piped gas.

Increase in Gas tariffs

The minister said, “[As many as] 57% of the domestic gas connections fall in the protected category, where there is no increase in the price,” the minister said, adding that a predetermined; bill of Rs400 per month was being introduced on account of fixed charges that was a “negligible” amount.Ali said the monthly bill of the protected class did not exceed Rs900 on a consumption of 0.9 cubic hectometers (Hm3) in a month.

Gas Circular Debt crossed Rs2100 billion

The current circular debt in the entire energy sector stands at Rs4.5 trillion without interest payments.In terms of gas, the existing circular debt is Rs2.1 trillion and Rs2.3 trillion in the power sector.With the help of price hikes the state will practically freeze the circular debt in the gas sector.It will also stop International gas companies leaving Pakistan because of the circular debt of gas.

Piped Gas Tariffs to meet LPG Cylinder Tariffs

The caretaker energy minister said the government had brought the tariff of the highest gas consumer at par with LPG, indicating an effort to standardise pricing across different consumer categories.He added that gas consumers would have to shift to LPG in the next coming years because of the shortage of the natural resource.