In a recent decision made by Pakistan’s Economic Coordination Committee (ECC), the government announced a significant increase in gas prices. This decision was made after a detailed discussion during the ECC meeting on January 25, 2025, where the Petroleum Division presented a proposal to raise the gas tariff for certain industries and domestic consumers.
The main reason behind this increase is to ensure that the gas sector has enough revenue to support its operations in the upcoming fiscal year (FY 2024-25). The decision mainly focuses on the gas tariff for industries, particularly those using gas for captive power plants. The new tariff for these plants will rise from Rs. 3,000 per metric million British thermal unit (mmbtu) to Rs. 3,500 per mmbtu. This hike is expected to help the government meet its financial targets for the energy sector and keep the gas supply steady.
On the other hand, the government has decided not to increase gas prices for domestic consumers at this stage. This decision was made to avoid placing additional financial burdens on regular households. Many citizens were worried that the increase in gas prices would affect their monthly bills, but the ECC has reassured the public that domestic users will not face higher costs for now.
The government has also instructed the Petroleum Division to explore other ways to make the energy sector more efficient. One of the proposed measures is to introduce a grid transition levy on captive power plants. This levy would help improve the overall energy sector in Pakistan and encourage more efficient use of resources.
The meeting, which led to this important decision, was chaired by Federal Minister for Finance, Senator Muhammad Aurangzeb. Other key members in attendance included Federal Minister for Petroleum, Mr. Musadik Masood Malik, and Minister for Power, Sardar Awais Ahmed Khan Leghari. The meeting also saw participation from various senior officials from government agencies such as the Oil and Gas Regulatory Authority (OGRA) and the Securities and Exchange Commission of Pakistan (SECP).
This new policy shows the government’s focus on ensuring that the gas sector remains financially stable while trying to protect domestic consumers from price hikes. However, it also signals the need for industries, especially those with captive power plants, to pay more for their gas usage. This is part of a broader effort to balance energy needs, fiscal goals, and economic stability in Pakistan.
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