February 13, 2023 (MLN): The Economic Coordination Committee (ECC) of the Cabinet, in its meeting which is scheduled to be held today, February 13, 2023, at 1600hrs, will be discussing the crucial matter of gas pricing for the financial year 2023.
Federal Minister for Finance and Revenue Senator Ishaq Dar will be chairing the meeting, where the pricing of gas will be discussed starting from January 01, 2023.
The outcome of today's meeting will have a far-reaching impact on the country's economy and its people. The decision on gas pricing will not only affect the production costs of various industries but will also have a direct impact on the household budgets of millions of people across the country.
The meeting of ECC is being closely watched by various stakeholders, including the business community, economists, and the general public, who are hoping for a transparent, fair, and sustainable pricing mechanism.
According to the news report, gas tariffs for consumers of the Sui Northern Gas Pipeline Limited (SNGPL) and the Sui Southern Gas Company (SSGC) will likely increase by Rs98 per mmbtu and Rs109.91 per mmbtu, respectively, in order to meet the International Monetary Fund's ninth review condition of zero growth in the gas sector's circular debt for the rest of the current fiscal year.
Informed sources told Business Recorder that the Oil and Gas Regulatory Authority (OGRA) must raise tariffs to prevent the projected increase of Rs70 billion in the existing Rs670bn circular debt of the two gas companies.
In a recent press conference, Finance Minister Ishaq Dar stated that the government is determined to stop further growth in the circular debt.
He said that the circular debt usually increases by around Rs170bn to Rs270bn annually.
