The hike is likely to yield Rs100 billion in additional revenue for govt; IMF board meets on Dec 7 to consider Pakistan's case
Thursday, November 23, 2023
Round obligation as of now remains at Rs1,250 billion.
Govt authorities say govt is mulling over an expansion in gas costs.
An increment of only 5% to create Rs50 billion is probable, they add.
ISLAMABAD: The public authority is probably going to climb gas costs by 10% to 15% in its offered to pay off round obligation that as of now remains at Rs1,250 billion, The News covered Thursday.
The choice comes after the Worldwide Money related Asset (IMF) requested that Islamabad climb petroleum gas costs from January 1 one year from now. The loan specialist is, in any case, mindful of the public authority gathering Rs980 billion in income during the continuous FY24 attributable to the huge climb in gas costs by up to 193%.
"The specialists are mulling over an expansion in the petroleum gas deal cost by 10-15%, which will yield Rs100 billion in extra income. It is to be utilized for cutting the gaseous petrol roundabout obligation. Nonetheless, a ultimate conclusion with this impact has not been taken up until this point," senior government authorities of the Energy Service told the distribution, adding that gas costs will increment by only 5% to create Rs50 billion.
With the gigantic ascent in gas cost by up to 193% from November 1, 2023, the public authority will have surplus income of Rs275 billion which will be consumed in paying the Rs210 billion expense to be brought about against the RLNG redirection to the homegrown area in the continuous winter season. It additionally counterbalances the deficiency of Rs65 billion brought about because of the disappointment of the public authority to advise gas cost climb four months late.
The gas organizations, Sui Southern and Sui Northern will present their petitions with the OGRA looking for a change in gas costs from January 1, 2023, which will most likely request a descending modification of gas costs.
In any case, the Asset maintains that the public authority should additionally increment gas costs by 10-15% from January 1, 2024. The Asset pinpointed that the public authority has neglected to climb the gas tax semiannually throughout the previous a long time beginning around 2013, causing a huge development in the gas roundabout obligation.
