In response to pressure from the International Monetary Fund (IMF), the government is now prepared to raise petrol prices for all groups, with the exception of protected consumers. This comes after significant increases in power costs.
On October 1, 2023, the government is expected to announce a significant rate increase for non-protected domestic consumers of up to 173 percent, commercial rates of 136 percent, export industry rates of 86 percent, non-export industry rates of 117 percent, rates for CNG at 144 percent, rates for cement at 193 percent, rates for Liberty Power at 62 percent, and rates for bulk at 25 percent.
The feed gas of Engro’s fertiliser factory, Roti Tandoor, and the protected category of home consumers will not be subject to the rate increase.
The government would be able to raise an astounding Rs. 435 billion from the people who are struggling with inflation thanks to the IMF’s recommendation for a significant increase in petrol prices. The lender has maintained its steadfast position and declined to make any concessions over the petrol price increase.
The government has no alternative but to increase the price of gasoline due to the lender’s imminent assessment under its $3 billion standby arrangement for a $1 billion tranche due in November.
The 1.7 trillion rupee circular debt owed by the oil and gas sector, of which 1.3 trillion rupees are owed by the gas sector, is what the IMF wants the government to come up with a plan to pay off.
