CCoP rejects domestic gas tariff hike proposal

ISLAMABAD: The Cabinet Committee on Energy (CCoE) on Friday turned down the upward revision of domestic gas price during winter for high slab consumers.

The CCoP met under the chair of Federal Minister for Planning, Development and Special Initiatives Asad Umar.

Petroleum division had submitted the summary of Revision of Gas Tariff Slabs for domestic consumers during winter season 2021-22.

The division had proposed to increase gas prices for those consumers using a higher volume of gas while insulate the low volume gas consumers from this increase.

The forum discussed the agenda in detail and outline that gas was a precious energy resource and resultantly import of LNG was a large drain on Pakistan’s foreign exchange. The committee noted that imported gas constituted a major part of the country’s total imports and consumer spending. It was now critically important to realise both on an individual and national level that energy resources need to be conserved by switching to energy-efficient appliances.

Similarly, the CCoE approved Power Division’s summary on the winter incentive package on incremental consumption for all domestic, commercial, and general services consumers of ex-Wapda distribution companies and K-Electric from November 1, 2021 till February 28, 2022.

The incentive power package would help reduce gas demand in winter and ease burden on national exchequer.

Moreover, CCoE formed a special committee to recommend measures in a month to ensure use of energy-efficient appliances through various fiscal and administrative incentives along with regulatory actions.

The Federal Minister for Science and Technology, Shibli Faraz will head the committee. It would also suggest measures to promote these appliances to rationalise consumption, reduce consumer’s monthly expenses, and resultantly cut the country’s energy import bill. The Minister for Energy, Minister for Maritime Affairs, SAPM on Power, Petroleum & Revenue, SAPM on CPEC, and representatives of regulatory authorities and senior officials of Ministries/Divisions also participated in the meeting.