The Caretaker Minister for Energy and Petroleum, Muhammad Ali, stated that the government’s decision to raise gas tariffs will help improve the country’s economy. He acknowledged that increasing gas prices was a difficult choice but necessary for the country’s benefit. He explained that the government needs to increase prices because the indigenous gas reserves have been declining for the past 10 years, forcing them to rely on expensive imported gas to meet energy needs. If gas prices were not raised, gas companies would have suffered losses of over Rs400 billion. The minister also emphasized that the increasing circular debt in the energy sector would be controlled with the gas price increase. Additionally, the minister highlighted that the government’s inability to invest in new reserves has led to increased dependence on imported fuels, which has contributed to inflation and a higher import bill. The government’s decision is expected to mitigate inflation, lower interest rates, and create employment opportunities. The new gas prices went into effect on November 1, 2023, and the cost of gas has increased due to the devaluation of the rupee and general inflation.
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