In response to the IMF’s demands, the government doubles the price of gas

On Monday, the government approved a rise of up to 113% in natural gas prices to recover Rs. 310 billion from the majority of consumers within six months, which will place an additional burden of at least Rs. 736 billion on citizens in the form of taxes and energy costs to revive the International Monetary Fund (IMF) program.

The Economic Coordination Committee of the Cabinet (ECC) made the decision to impose a maximum burden of 113% on domestic consumers who consume more than four cubic metres of gas per month.

The government has increased natural gas prices for domestic consumers by 8.5% to 113% and has also “optimized” the previous slab benefit.

Meanwhile, prices for bulk consumers, such as commercial, power producers, fertiliser plants, cement, exporters, general industry, and CNG stations, have been increased from 10.4% to 105%.

In order to reach a staff-level agreement with the IMF, the government has fulfilled two prior conditions set by the organization, including raising electricity and gas prices, among other requirements.