In response to a request from the International Monetary Fund (IMF), Pakistan is preparing to ‘revise’ its gas rates for the fertilizer industry, starting in the current month of October.
Pakistan ‘revise’ gas tariff: According to sources, the interim administration made the decision after the foreign lender ‘refused’ to provide petrol to the fertilizer industry at a discounted rate.
“The interim administration timed the start of a review with the International Monetary Fund (IMF) under a $3 billion structural adjustment program (SAP) loan to coincide with this adjustment.”
Furthermore, 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, petrol will cost Rs278 more per MMBTu for the industry that produces fertiliser, bringing the total cost per MMBTu to Rs1,580.
Additionally, The attempt to raise petrol prices in a variety of industries, including fertiliser manufacturing, is part of a larger plan to address Pakistan’s huge circular debt in the country’s energy sector.
However, “The International Monetary Fund (IMF) is likely to conduct negotiations for the second tranche of the bailout in the final week of October.”