March 27, 2023
Economy Pakistan

Federal Government Approves Significant Hike in Gas Prices Amidst Rising Petroleum Costs

The recent surge in the prices of petroleum products has led to a significant increase in the gas rates as well. The Federal Government has approved the Economic Coordination Committee (ECC) of the federal cabinet’s proposal to increase gas prices, thereby adding to the burden of the already struggling masses.

According to the notification issued by the Oil and Gas Regulatory Authority (OGRA), domestic gas consumers who utilize up to 100 cubic meters would experience a 16% increase in rates. The new prices fixed for these consumers are Rs350/MMBTU. Those who consume more than 200 cubic meters would face a staggering 32% increase.

Commercial consumers are not spared either, with gas rates increasing by 28%. The fertiliser sector is expected to witness a whopping 46% raise in prices, while the cement sector is likely to experience a surge of around 17.50%.

The decision to increase gas prices has come at a time when the masses are already grappling with the rising cost of living. This sudden and significant increase in gas rates is bound to put a strain on their already tight budgets. It is also likely to adversely impact small businesses, which are already struggling to stay afloat amidst the economic slowdown caused by the pandemic.

While the government may argue that the increase in gas prices was necessitated by the rising petroleum costs, it is essential to consider the impact of such decisions on the masses. Instead of adding to their financial burden, the government must explore alternative ways to deal with the rising costs of petroleum products without making life even more difficult for the common man.

The recent hike in gas prices approved by the federal government is likely to have severe implications for the masses, particularly those belonging to the lower income brackets. The government must take into account the impact of its decisions on the people it is meant to serve and explore alternative solutions to tackle the issue of rising petroleum costs.

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