by 1. What’s the change?
- From July 1, 2025, the federal government will increase fixed monthly charges on domestic gas bills by roughly 50%.
- Protected domestic consumers: rising from ₨400 to ₨600.
- Non-protected households: rising from ₨1,000 to ₨1,500 .
2. Why the hike?
- This adjustment is part of the Economic Coordination Committee’s (ECC) broader mandate to ensure cost-recovery and upgrade aging infrastructure.
- The measure is framed as a more equitable alternative to increasing per-unit gas tariffs, which would directly impact poorer households.
3. Broader energy reforms in sight
- The ECC also approved a 10% increase in gas tariffs for bulk, industrial, and power sector users—part of IMF-mandated energy-pricing reforms.
- These changes align with promises of annual rebasing for electricity and biannual gas-price reviews (July and February) .
4. Impact on households
- Protected consumers: now pay ₨600 fixed charge monthly.
- Non-protected consumers, especially those using more than 1.5 m³/day, face a surcharge of ₨2,400, up from ₨2,000.
- While the per-unit rate remains the same, every household pays a higher minimum amount regardless of usage.
5. Reactions from ministries & industry
- Power Division cautions that raising fixed charges may eventually escalate electricity costs, undermining industrial competitiveness.
- Ministry of Industry warns of negative spillovers on exports and business growth .
- KCCI & industry bodies criticize the inconsistency: OGRA reduced SSGC’s tariff in May, yet ECC is hiking industrial rates—calling the policy contradictory.
6. How this affects your pocket
- A 50% hike in fixed charges translates to a monthly increase of:
- ₨200 more for protected consumers,
- ₨500–₨400 more for non-protected users.
- Annual small bills now increase ₨2,400–₨6,000, regardless of gas usage.
- Over time, utilities may roll these costs into higher electricity bills via adjustments in Fuel Cost Adjustments (FCA)..
- Govt Likely to Increase Fixed Charges in Gas Bills by 50%.
✅ Final Takeaway
The move to hike fixed charges reflects the government’s strategy to shift recovery costs away from volume-based charges and onto a base fee—apparently to reduce pain for lower-income households. But critics argue the burden now sits squarely on all consumers, regardless of actual usage. Amid broader IMF-driven energy reforms and sectoral pressures, families should brace for steady increases—not only in gas but also in electricity—well beyond July 2025.
