Consumers may soon face higher gas bills, with sources in the Finance Ministry saying the International Monetary Fund has urged the government to pass on the rise in gas prices to users.
According to the same sources, circular debt in the gas sector has grown beyond Rs 3,600 billion. The government has also begun work on a deregulation project for the sector.
Privatisation and private investment plan for gas firms
Under the proposed deregulation project, the government intends to sell off both gas distribution companies and bring private capital into the sector. The plan will soon be placed before the Prime Minister for consideration.
Sources said the Finance Ministry, the Petroleum Ministry and other relevant departments have been instructed to draft the proposal. The move is being weighed in line with IMF conditions and was raised earlier during the last economic review.
Public burden and next steps for approval
Sources described the plan as a blow to the public, since consumers will bear the price rises while the private sector’s role expands. A final decision will follow only after the Prime Minister approves the initial proposal.
