February 14, 2024 (MLN): The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved the revision of gas sale prices and tariffs, ensuring consistency with the revenue requirements of Sui Northern Gas Pipelines Limited (PSX: SNGP) and Sui Southern Gas Company Limited (PSX: SSGC).
This much-needed nod will improve the cash flows of Sui companies.
The committee recommended a uniform gas price for all fertilizer plants across the country. This will help to create a level playing field for fertilizer producers and potentially impact urea prices.
The committee also directed the Competition Commission of Pakistan (CCP) to investigate the recent surge in urea prices and identify the responsible parties.
Petroleum Division tabled the summary regarding “Natural Gas Sale Pricing FY 2023-24 effective from February 01, 2024, was deliberated upon at length.
Media reports suggest that Cabinet members remained divided on Tuesday over a proposed increase of up to 69% in gas prices.
Any delay beyond Thursday could cost Pakistan $1.2 billion, as the International Monetary Fund (IMF) has been assured that the deadline for reassessment of gas price increases is only two days away.
Caretaker Finance Minister Dr. Shamshad Akhtar presided over the said meeting.
