More Misery As Govt All Set to Drop Gas Bomb on IMF’s Demand

After massive hikes in electricity tariffs, the government is now all set to raise gas rates for all categories excluding protected consumers, succumbing to pressure from the International Monetary Fund (IMF). The government is on the verge of announcing a massive increase in rates for non-protected domestic consumers by up to 173 percent, commercial 136 percent, export industry 86 percent, non-export industry 117 percent, CNG 144 percent, cement 193 percent, Liberty Power 62 percent, and bulk 25 percent, effective 1st October 2023. The protected category of home consumers, Roti Tandoor, and feed gas of Engro’s fertilizer plant will be exempt from the rate hike. The IMF has called for a substantial hike in gas rates, which will see the government collect a staggering Rs. 435 billion from the inflation-hit masses. The lender has remained unwavering in its stance, refusing to grant any concessions on the gas rate hike. With the lender’s upcoming review under its $3 billion Standby Arrangement for a $1 billion tranche due in November, the government has no choice but to raise the gas rate. The IMF wants the government to devise a strategy to eliminate Rs. 1.7 trillion in oil & gas sector circular debt, Rs. 1.3 trillion of which is owed by the gas sector.