The government plans to raise gas prices to encourage a shift from gas-based heating to electric heating during winter.

A committee led by Petroleum Minister Musadik Malik, including the Nepra chairman and secretaries of Power and Petroleum, has been formed to oversee this change.

The Prime Minister formed a committee in late July to propose increasing gas prices and adjusting electricity rates to promote electric heating.

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The committee is set to meet either this week or next to discuss increasing gas prices to encourage a shift from gas-based to electric space heating. They will also determine the new electricity rates for winter heating.

Authorities plan to raise gas prices across all consumer categories, including the first 11 slabs, to encourage a shift from gas-based to electric heating.

Currently, the highest slab pays Rs4,200 per MMBTU, which is significantly more than the price of imported RLNG.

The government plans to raise gas prices to discourage its use for space heating and redirect local gas to power generation. This strategy aims to lower electricity tariffs and address the Rs2.2 trillion capacity payments issue for the 2024-25 financial year.

There is a proposal to offer electricity for space heating at a base tariff of Rs35.50 per unit. This increase in electricity consumption during winter is expected to help manage the capacity payments issue, as winter demand drops significantly from peak summer levels.

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