The caretaker administration in Pakistan is doubling petrol prices in response to IMF demands.
Gas likely to increased: In order to reduce circular debt in the gas industry, the IMF reportedly wanted an increase in gas pricing of up to 100 percent before the next economic review.
“Sources state that not raising the gas rate will result in the addition of Rs185 billion to the circular debt of the gas sector.” The gas industry is currently carrying a circular debt of around Rs 2,700 billion.
They claimed that the gas companies’ aggregate losses increased by Rs46 billion during July and September 2023.
“The Economic Coordination Committee (ECC) is likely to hold its next meeting before receiving the summary of the hike.”
Prior to this, it became known that the government will raise the petrol tax on the industry that produces fertiliser.
The fertiliser industry should see an increase in petrol prices under the new pricing scheme, to about Rs580 per MMBtu for feedstock uses. According to the sources, the price of petrol will increase for the industry that produces fertiliser by Rs278 per MMBTu, bringing the total cost to Rs1,580 per MMBTu.
The International Monetary Fund (IMF) bailout negotiations for the second tranche are most likely to take place in the final week of October.