Pakistan is likely to cause a stir at the International Monetary Fund (IMF) ahead of its next assessment under the $3 billion Stand-By Arrangement (SBA) due to failure to announce a rise in petrol prices.
After the government’s failure, the Oil and Gas Regulatory Authority (Ogra) may become irritated before it reviews the country’s SBA loan for the next tranche of $1 billion in November of this year. Ogra had already determined a 45% to 50% hike on June 2 of this year.
Islamabad’s interim government is thus forced to accept the increase of 45% to 50%. Prior to the senior Energy Ministry officials telling the media, Ogra has also made the interim administration aware of the need for a petrol price increase.
The Sui Northern Gas Pipeline Limited (SNGPL) customers would now pay Rs1238.68 per MMBTU for gas, up from the previous announcement of a 50% price rise (Rs415.11 per MMBTU). Ogra also increased tariffs for Sui Southern Gas Company Limited (SSGCL) customers by 45% (417.23 per MMBTU) for the years 2023–2024.
“The necessary authorities have made the acting federal energy minister aware of the necessity of a price hike for petrol. The regulator must announce the necessary increase in petrol price in accordance with the law as revised in response to IMF and World Bank recommendations if the government does not take the necessary steps within 40 days after Ogra’s determination.
Since Ogra’s decision to raise petrol prices by 45–50%, 83 days have passed, according to Energy Ministry officials.
The gap between the two gas firms is Rs. 657.766 billion. Prior to the review sessions, the Fund may also bring up this specific problem at any moment with the government.