The government has implemented a 9% hike in gas rates for industrial captive power units from July 1 to fulfill IMF requirements, while blocking a potential Rs133 billion relief from lower international oil prices for other consumers. This decision, made at an Economic Coordination Committee meeting chaired by Finance Minister Muhammad AuranÂgzeb, is part of efforts to comply with IMF conditions for a three-year loan program. Despite earlier plans by the Oil and Gas Regulatory Authority (Ogra) to reduce gas prices by Rs180 per unit for fiscal year 2024-25, the government redirected these funds towards addressing circular debt instead of passing on savings to consumers facing inflation and new taxes. The move aims to manage revenue requirements for Sui Northern and Sui Southern Gas Companies, with projections indicating a surplus if current consumer gas prices remain unchanged until December 2024.
