ISLAMABAD: The PML-N government has seemingly put the Iran-Pakistan gas pipeline project on the backburner by deciding to use the funds generated through the imposition of the Gas Infrastructure Development Cess (GIDC) to bridge the fiscal deficit.
The previous government had imposed the GIDC on gas consumers to generate the $1bn needed to finance the construction of the IP gas pipeline, but the PML-N government is seeking discretionary powers from parliament to raise gas prices through the cess, in order to bring them at par with prices of other alternate fuels.
Officials said the move may result in a massive rise in gas prices for all consumers except domestic consumers — including the CNG and fertiliser sectors and captive power plants — if the government decides to rationalise gas prices and bring them at par with other alternate fuels like petrol and furnace oil.
Sources said the petroleum ministry had approached the Council of Common Interests to seek consent from the provinces to allow the federal government to introduce a new bill in parliament which will amend the GIDC Act, 2011.
The amendments will allow the centre to use the GIDC as a fiscal tool in rationalising gas prices. Internews
