The price of gas has been jacked up 200% in Pakistan with effect from Jan 1, 2023, to fulfil IMF conditions, it emerged on Wednesday.

Households that use up to 50 cubic meters will be exempt.

• 100 cubic meters is fixed at Rs350 after an increase of 16.6%
• 200 cubic meters rose to Rs730 after a 32% increase
• 300 cubic meters rose 69% to Rs1250
• 400 cubic meters rose by 99% to Rs2200

The price for commercial customers has been increased 28.6%, after which the price is Rs1,650 per mmbtu.

Zubair Motiwalla told Aaj News: “When anything goes up, then manufacturing units that cater to local markets face difficulty. Gas to industry is 35% more expensive.” Manufacturers who export are not affected that badly as they earn in dollars.

“Inflation hits local producers who pass it on to consumers,” he said. “It was not as if we were not expecting this, he said. But to make matters worse, gas is short in Karachi.”

The trouble is that the government has backdated the increase, which puts manufacturers who have sold at certain rates now see their margin squeezed. It should never be retrospective, but it should be prospective.