The decision to increase gas price
The decision to increase gas prices! Sui Southern and Sui Northern, both national gas suppliers and distributors, have demanded a tariff of Rs 194 per unit after economists say this will lead to a new inflation in the country. The tide will come and the central bank will have to keep interest rates at a higher level.
Sui Southern and Sui Northern have suggested raising their taxes from July 1, 2019, to Rs 194 for every unit. The gas companies hope that after the approval of the new tariff, they will be able to generate additional revenue of Rs 93 billion 69 crore during the current financial year.
It ought to be noticed that as indicated by the administration and free specialists, swelling and residential obligation are two of the issues that have been proclaimed as a significant test for this legislature and the ascent in gas costs has been the primary driver of expansion. Furthermore, the yearly report discharged a month ago by the State Bank likewise said that the greatest and most direct effect on swelling was because of the ascent in gas costs. In the event that the administration favors these suggestions. This will be the second increment this monetary year.
Earlier, the government increased the gas prices by 190%, which was included in the terms of the new loan from the IMF. Sui Nardan recommends raising Rs 194 per MMBTU (unit) so that It could extract an additional Rs 71 billion from the pockets of consumers and meet the annual revenue deficit or reduction, while Sui Southern, on the other hand, recommended an increase of Rs 62 to 52 paise per unit and it hopes to increase its revenue after the increase. Another 22 billion 67 crore rupees will be added during the financial year.