The government is set to increase the system gas tariff by up to 50 percent. Increase in tariff will come into force from July 1, 2022, reports say. The move is seen as another step to pave the way for the International Monetary Fund (IMF) bailout.
Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) have faced combined losses to Rs. Five hundred fifty billion in recent years. Both companies are facing losses as the system gas tariff has not been increased for some time.
The IMF has said that Pakistan’s bailout deal won’t be revived unless the country ends the subsidies on petroleum products. The government increased the prices of petroleum products by Rs. 30 per litre after the IMF made it clear that the bailout deal would not be revived if the country did not end the subsidies.