Federal cabinet okays gas tariff hike by 67pc

Amidst widespread public outcry, the caretaker government has approved a significant 67% hike in gas prices, heralding a surge in the cost of living for consumers effective February 1.

Endorsed during a federal cabinet meeting chaired by caretaker Prime Minister Anwarul Haq Kakar, this decision mirrors the recommendation of the Economic Coordination Committee (ECC), which advocated for the steep increase.

The pronounced increase in rates will affect both protected and non-protected consumers, resulting in a respective increment of Rs100 and Rs300 per MMBTU (million British thermal units).

It's worth noting that while consumption charges will see a considerable uptick, fixed charges for both consumer categories will remain unchanged. However, bulk gas consumers are slated to endure a substantial blow, contending with a staggering rise of Rs900 per MMBTU.

Adding to the complexity, the CNG sector is poised for its own array of challenges, with prices projected to soar by Rs170 per MMBTU. Cumulatively, these price adjustments are anticipated to impose an additional financial burden of Rs204 billion on consumers at large.

Unsurprisingly, the decision has ignited a wave of criticism, with many lambasting the government for exacerbating the financial strain on an already beleaguered populace.

As households brace for the ripple effects of heightened gas prices on their budgets, apprehensions mount over the potential amplification of inflationary pressures throughout the economy.