ECC approves increase in gas prices

The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved an increase in gas prices for residential and industrial consumers to recover an additional Rs242 billion but could not finalise rates due to the competing interests of cabinet members. The ECC also approved the imposition of 25% sales tax on all categories of SUVs and CUVs having value of over Rs4 million, excluding taxes. The decision will give Rs4.5 billion in additional revenue to the Federal Board of Revenue (FBR). The matter of gas price increase is likely to land in the federal cabinet on Thursday and the Petroleum Division is in the process of working out new rates for the residential consumers and captive power plants in light of the discussions held in the ECC meeting.