Caretaker Govts Finally Increase Gas Prices

This appears to be a detailed report on the recent decisions and changes in the natural gas tariff by the Economic Coordination Committee (ECC) in Pakistan, as of October 30th, 2023. Here’s a summary of the key points:


The ECC has approved revised natural gas tariffs for both the export and CNG sectors. For the export industry, the new tariffs are set at Rs. 2,400 per mmbtu for captive and Rs. 2,100 for the process export industry. This represents an increase from the earlier approved rates.


The non-export industry will now have a gas tariff of Rs. 2,500 per mmbtu, up from the earlier proposed rate of Rs. 1,200 to Rs. 2,600.

For the CNG sector, the new approved gas tariff is Rs. 3,600 per mmbtu, down from the earlier approved rate of Rs. 4,400 per mmbtu.

The decision to revise the natural gas prices was made in response to the rapidly dwindling natural gas reserves, the devaluation of the rupee, and general inflation, which have increased the cost of gas exploration, production, distribution, and transmission.

The government aims to promote the efficient use of natural gas while ensuring sustainability and affordability. The decision-making process was influenced by conflicting objectives, particularly the need to balance affordability with the sustainability of the gas supply chain.

The report also highlights the consequences of inadequate pricing policies in previous governments, leading to circular debt and financial strain on the national exchequer.


Measures have been implemented to ensure that the most vulnerable sections of society are protected from excessive price hikes, including fixed billing for certain protected consumers and businesses, as well as exemptions for essential sectors like the Roti tandoors.

The government aims to rationalize gas prices across different industries and regions, taking into account regional competitiveness and energy tariffs in neighboring countries.


The focus is on discouraging inefficient use of gas and promoting conservation measures, particularly in sectors where alternative fuels are available.

These decisions reflect the complex balancing act required to manage the energy sector in the face of depleting resources and economic challenges, while also ensuring the protection of vulnerable sections of society.

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