To put it into perspective, the gas sector has been facing an annual loss of Rs350 billion, and the total circular debt in this sector has ballooned to a staggering Rs2,700 billion
So, what does this mean for the public? Unfortunately, it means that the interim government plans to transfer the burden of these losses onto the people. If the gas prices go up as proposed, it would mean an increase of Rs417 per mmbtu (that’s a unit of measurement for gas) for Sui Northern and Rs415 per mmbtu for Sui Southern.
Approval from Ogra
The Oil and Gas Regulatory Authority (Ogra) has already given the green light for this increase in gas prices. This move aligns with the demands of the International Monetary Fund (IMF), a global financial organization.
If this price revision goes ahead, it will come into effect from July 1, 2023. The Ministry of Energy will issue an official notification regarding this change.