The caretaker government might ‘revise’ gas tariff for the fertilizer sector of Pakistan from the month of October 2023. The decision came on demand of the International Monetary Fund (IMF). Earlier, IMF denied the provision of gas at the subsidized rate to the fertilizer area.
According to the new pricing model, applicable from October 2023, gas tariffs increase to Rs580 per MMBtu for feedstock purposes. For the fertilizer-producing sector, the gas will be made costlier by Rs278 per MMBTu. The new rate of gas will reach Rs1,580 MMBTu.
The revision in gas prices occurred across multiple sectors, including the fertilizer sector of Pakistan under a broader strategy to tackle the substantial circular debt of the energy sector. Pakistan and IMF will begin the talks for the second tranche of the bailout in the last week of October.