Tuesday saw the approval of yet another rise in gas pricing by the Oil and Gas Regulatory Authority (Ogra), with the goal of making up for the alarming Rs98 billion deficit that is ailing the country’s economy.

The increased rates, which are in effect from January 1, 2024, to June 30, 2024, will cause even more problems for individuals who are currently dealing with historically high rates of inflation. This represents the second petrol price adjustment for the current fiscal year 2023–2024.

The government has decided to increase the tariffs of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), a decision that would have an impact on people all throughout the country.

Tariffs on SNGPL will increase by a significant 35.13 percent, while SSGCL’s charges would increase by 8.57 percent.

According to Ogra’s plan dated February 2, there would be a major increase in petrol prices. The average price per MMBTU would rise to Rs1,590 from the previous cost of Rs1,291 set in June 2023.

This change is a result of increasing pressure from the International Monetary Fund (IMF), which has called for biannual adjustments to petrol prices in order to reduce the rapidly increasing circular debt.

Sui Northern petrol rates have increased significantly from the previous cost of Rs1,238.68 to Rs1,673.82 per MMBTU as a result of a recent Ogra judgement.

Sui Southern’s petrol rates have also increased, going from Rs1,350.68 per MMBTU to Rs1,466.40 per MMBTU.

The decision by the government to accept this increase in petrol prices has caused conflicting responses among different groups in society. Some contend that it’s an essential step in addressing the economic difficulties, while others voice worries about how it would affect the already burdened population.

The cost of basic utilities becomes a more urgent worry for regular individuals as inflation rates rise to unprecedented levels.

The discourse around the effectiveness of these policies is becoming more heated as the country struggles with economic uncertainty, which emphasises the necessity for all-encompassing approaches to address Pakistan’s economic problems while defending the interests of its citizens.