Govt to end supply of subsidised gas to industry

Rates for residential consumers also expected to increase under three-phase plan

The government is going to withdraw subsidised gas rates of $6.5 per unit for the industrial sector as first part of a three-phased tariff rationalisation plan with the ongoing supply shortages and unsustainable average cost of gas, according to a report by Dawn.

The report quoted a senior government official saying that the Ministry of Energy (Petroleum Division) had already moved a summary to the federal cabinet in this regard, including captive power plants, immediately.

The Cabinet meeting scheduled for Tuesday is expected to take up the summary for a decision given urgency of the matter.

The official said the average prescribed price of local gas stood at about Rs645 per unit (million British thermal units) while the delivered cost of latest LNG cargoes had gone beyond Rs5,000 per unit. The average LNG (liquefied natural gas) sale price last month stood at about Rs2,730 per unit.

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  1. The government has absolutely no idea how to manage the economy. Adhoc measures and steps being taken to ensure release of next IMF tranche without any long term implications discussed. Why has government provided tax amnesty scheme to the real estate sector when everyone know that black money or even excess wealth is parked in this sector instead of new industries?.


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