• Wed. May 29th, 2024

Gas Prices Triple for Low- and Middle-Income Households as Government Removes Subsidies

BySamantha Nguyen

Mar 27, 2024
Subsidy Removal Could Lead to Increases Exceeding 500% for Homes, Industries, and Businesses

The Government is set to implement resolutions that will result in an increase in natural gas rates per network starting on Monday, April 1. Subsidies will be removed from high-income households, businesses, and industries, causing the price of gas to at least triple next month, with another extra jump between May and September. Despite concerns about the impact on low- and middle-income households, the new rates will be implemented to address the energy sector’s financial challenges.

The official definition of the rate increase comes two months late. Due to the fiscal situation and the overall context of the energy sector, the decision to increase rates could not be delayed any longer. The Energy resolution 41/2024 establishes the new wholesale gas prices at the Point of Entry to the Transportation System (PIST), which are a key part of the bill along with transportation, distribution, and tax margins. The impact of this resolution on users is yet to be clarified by officials, but it is known that some households will see a near tripling of gas prices starting in April.

Overall, gas prices are expected to rise significantly for all users between May and September, with some paying over four times the current rate depending on their location. The rise in bills will be most noticeable in winter when higher consumption is combined with higher energy prices. This decision was made as part of a larger effort by government officials to reduce energy subsidies and realign rates with actual cost of supply.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply