ECC approves revision in consumer gas sale prices

July 7, 2022 (MLN):  The Economic Coordination Committee (ECC) of the Cabinet has approved the proposed revision in consumer gas sale prices with the direction to further reduce the gas rates for export and non-export industry/ captive power.       

Petroleum Division submitted a summary on the natural gas sale pricing FY 2022-23. It was submitted that since FY 2015-16, the gas prices were not revised in line with revenue requirements determined by OGRA, said a press release issued today.

This resulted in the accumulation of revenue shortfall/tariff differential amounting to Rs547 billion as of March 2022.

 Similarly, the gas sector circular debt remained at Rs299 billion in June 2018 increasing to Rs. 1232 billion on 31st March 2022.  To overcome revenue losses, contain gas sector circular debt, to sustain the supply chain and invest in exploration and production, Petroleum Division placed broad principles/parameters for revision of the category–wise consumer gas sale prices.

The ECC approved the proposed revision in consumer gas sale prices with the direction to further reduce the gas rates for export and non-export industry/ captive power.   

Besides, the Ministry of Industries and Production submitted a summary on the continuation of PM’s relief package, 2020, the Sasta Atta initiative for KPK & expansion of the Utility Stores network across Pakistan.

The ECC approved the continuity of distribution of subsidized Atta under Prime Minister’s Sasta Atta Initiative on 1200 additional sale points in KPK for the two months from 1st July to 31st August 2022 with further directions to submit in the next meeting of ECC complete mechanism on the distribution of subsidy packages through USC.

Moreover, the Ministry of Industries and Production submitted another summary on the provision of funds to HEC to release the markup amount. The ECC allowed funds in the form of grant amounting to Rs96.873 million already released as loan to HEC in pursuance of ECC’s decision dated 22nd November 2021.

The ECC also approved funds amounting to Rs20.085 million in the form of Grant and allowed its allocation through Technical Supplementary Grant to the Ministry of Industries and Production. The funds have already been approved by the ECC in its decision dated 30th March 2022. 

Further, the ECC directed the Privatization Commission that in future all liabilities may be mentioned in contracts between buyer and seller of privatized entities. 

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