In a relentless onslaught on consumers’ wallets, citizens in the region face yet another financial setback as gas prices soar in the wake of recent electricity tariff hikes. The latest blow comes as the Sui Northern Gas Company (SNGC) announces an imposition of fixed charges in the November bills, further burdening households already grappling with increased living costs. The move, approved by the caretaker government, is set to affect millions of consumers across the country.
News Update Related to Gas
According to official statements, protected consumers using 0.9 hectometer gas will now bear a monthly fixed charge of Rs400. Similarly, non-protected users consuming up to 1.5 hecta meters will face an additional Rs1,000 in their bills. Shockingly, even consumers with zero gas usage will be protected, as they must now pay Rs400 in monthly fixed charges.
These fixed charges are estimated to affect a staggering 8 million consumers, significantly amplifying the financial strain on households. The decision by SNGC follows closely on the heels of a similar move by the Sui Southern Gas Company Limited (SSGC), which sought an increase in gas prices by Rs226.18 per metric million British thermal units (mmBtu) on December 17.
Reason for Rise in Electricity and Gas Prices
Highlighting a projected shortfall of Rs47,773 million in revenue requirements for the current fiscal year, SSGC justified its request for a substantial increase. The proposed adjustment in average prescribed prices is anticipated to take effect from July 1, 2023.
The relentless onslaught on consumers’ finances began earlier when the caretaker federal government implemented a substantial hike in gas prices, effective from November 1. This dual assault, with both electricity tariffs and gas prices on the rise, paints a grim picture for the already economically burdened citizens.
Impacts on Citizens
As households grapple with the compounding challenges of inflation, increased utility prices, and economic uncertainties, concerns about the affordability of necessities are mounting. The collective impact of these price hikes underscores the need for thoughtful policy considerations and measures to alleviate the financial strain on the population.