Latest Gas prices in Pakistan from July 1st: The federal government has opted not to decrease natural gas prices in the upcoming fiscal year beginning July 1, 2024, rejecting a proposal from the Oil and Gas Regulatory Authority (OGRA) to reduce prices by 10 percent.
Instead of a price reduction, the government has decided to raise gas prices for captive power plants (CPPs) by Rs250 per mmBtu, increasing it from Rs2750 to Rs3000 per mmBtu.
This decision aligns with International Monetary Fund (IMF) conditions, as Pakistan seeks additional financial assistance to prevent economic default. The adjustment is expected to generate an additional revenue of Rs110-115 billion.
However, gas prices for other consumer categories will remain unchanged. The surplus revenue will be directed towards addressing the growing circular debt, which stands at Rs2,900 billion.
The Petroleum Division advocates that surplus revenue from Sui gas companies should be utilized to alleviate the circular debt burden.
In accordance with IMF directives, the government aims to equalize gas prices for captive power plants with RLNG prices by January 1, 2025. Initially, starting from July 1, the price for these power plants will rise by Rs250 per mmBtu, followed by an additional increase of Rs700 per mmBtu from January 1, 2025.
