Govt to Increase Gas Prices for Elite
Staff Report
The caretaker Energy Ministry said on Monday that the government planned to increase gas prices for the elite.
The effort related to the increase is not to burden the poor consumers with more than Rs 500, said the Minister of Energy, adding that the increase in gas prices will be higher for the rich class.
The country’s gas sector is facing a loss of Rs 1 billion per day, while its annual loss is Rs 350 billion, and the circular debt of the gas sector has reached Rs 2900 billion.
This shocking disclosure was made by the Caretaker Federal Minister of Energy, Muhammad Ali, while briefing the journalists regarding the power sector of the country.
Ali also announced that gas load shedding will be done in the winter season while the situation of gas supply will remain the same as last year. As much gas as was supplied last year will be supplied this year, said the caretaker energy minister.
The Energy Minister further said that the work related to the increase in gas prices is in progress, as an increase in gas prices has become inevitable for the improvement of the gas sector, while 60 percent of gas consumers will be protected from the increase in prices.
About the proposed reforms for power distribution companies (DISCOs), Muhammad Ali said three proposals are being worked on for reforms in the DISCOs.
He said that under the first proposal, the privatization of DISCOs is under consideration, while long-term concessional agreements are also proposed for power companies.
He said that under this method, the management of DISCOs would be given to the private sector for more than 20 years.
He said the proposal to give the power companies (DISCOs) to the respective provinces is also under consideration.
Changes in the board of directors of the companies are going to be made, and this change in the board of directors will start the process of reforms, said the Minister of Energy.
When asked about the likely decrease in the per-liter prices of petroleum products with the start of the next month of October, the caretaker federal energy minister, Muhammad Ali, said it is too early to say anything about price reduction as the price of petroleum products will be fixed on September 30.
If the depreciation of the dollar continues, positive progress is definitely expected, said the Minister of Energy. Unscheduled Load shedding: Nepra warns Discos to face action
The purchase of oil from the international market is also considered while fixing the oil prices, the Minister of Energy added.
