Federal govt might increase electricity and gas tariffs after Punjab by-elections

The administration has taken conscious efforts to prevent raising gas and electricity prices ahead of the by-election in 20 Punjab seats that is due to take place tomorrow (Sunday).

According to a media report, the rise in electricity and gas rates that must be disclosed in order to meet the requirements set forth by the International Monetary Fund (IMF) has not yet been informed.

The topic at hand was not discussed at the federal cabinet meeting that Prime Minister Shehbaz Sharif presided over the day before.

The Economic Coordination Committee (ECC) has largely authorized the hike in gas prices for different slabs ranging from 43 to 353%. ECC also decided to reduce the number of slabs from seven to five.

Federal Minister for information to Marriyum Aurangzeb on Friday also said that the federal cabinet on did not approve raising tax on gas prices.

According to a report, Federal Minister for Finance and Revenue Miftah Ismail after the cabinet meeting revealed that they had sent the summary back to the Ministry of Petroleum to make revisions for some of the sectors for which the calculation had been altered.

As a result, the summary was sent back with instructions to conduct new computations. Additionally, he stated that the federal cabinet’s meeting on Friday did not address the increase in petrol prices.

According to the Oil and Gas Regulatory Authority’s (OGRA) Amended Act, the established tariff has an automatic application time of 40 days after the regulator makes its conclusion.
Increase in electricity tariff:

ECC authorized an increase in the base rate for the energy of Rs 7.92 per unit. However, it was decided to implement it gradually. The decision had been made to increase the energy cost in three stages, commencing in July at Rs3.25 per unit, moving up to Rs3.25 per unit in August/September, and finishing at Rs3.25 per unit in October 2022.

The Ministry of Power spoke with the Law Division in order to consider the possibility of asking the regulator, the National Power Electric Authority (NEPRA), to reconsider an earlier judgment.

However, according to official sources, the NEPRA was now considering two separate matters. First, the authority would discuss the petition for establishing a uniform tariff next week, which was still pending before the regulator.

Second, the distribution firms submitted a review petition requesting the regulator to approve larger tariff increases than those established by the NEPRA.

According to NEPRA law, the tariff set by the NEPRA would have been informed automatically within 30 days after the decision of the tariff if no review petition is submitted. According to the sources, the administration contacted the NEPRA before of Eid-ul-Azha holidays to prevent being notified automatically of the chosen pricing.

The IMF’s Executive Board meeting is anticipated to take place after the second week of August 2022, and top official sources have stated that Islamabad would be required to announce gas and electricity pricing before to that meeting at all costs.