The Federal Government notified a hike of upto 172% in gas prices hours after the cabinet said it had deferred the decision.

Consumers who use less than 0.9hm3 gas per month and make up 57% of total consumers will have to pay fixed charges of Rs400.

“It is still ensured that the monthly bill of protected class does not exceed Rs.900 on a consumption of 0.9 hm3 in a month,” the notification said.

Fixed charges for consumers using 1.5hm3 have been raised to Rs1,000 while charges for those using upto 4hm3 have been raised to 2,000.

The notification by the petroleum division said that the decision had been taken in view of the rapidly dwindling gas reserves in the country.

“The rapidly dwindling natural gas reserves at rate 5-7% per year is burdening the national gas basket with more expensive imported fuel (LNG),” the notification read.

The notification also mentioned inflation and devaluation of the rupee as the reasons for the hike.

Caretaker Information Minister Murtaza Solangi on Monday said that the interim cabinet had deferred the decision of a hike in the gas prices.

“The cabinet meeting has directed to reconsider the changes in the price of natural gas,” he said while addressing a news conference about the cabinet meeting in Islamabad.

Solangi went on to add that the cabinet has directed the Economic Coordination Committee to hold a meeting today regarding the gas price and approve it decision from the cabinet.

Reports had said that the Economic Coordination Committee approved an increase of 172% in the gas tariff for domestic consumers.

However, the notification was issued a few hours later.

During the ECC meeting on October 23, the summary forwarded by the petroleum division suggesting 200% increase in the gas tariff was approved, they added.

The government plans to collect additional Rs400 billion from the consumers. The federal cabinet will have the final say on the approval of the hike in the gas tariff.