Tag: electricity bills

  • Weekly inflation up by 4% due to sharp increase in electricity prices

    Weekly inflation up by 4% due to sharp increase in electricity prices

    Owing to a sharp increase in electricity prices, the sensitive pricing index (SPI), which measures weekly inflation, increased by more than 4 per cent.

    According to data released on Friday by the Pakistan Bureau of Statistics (PBS), the SPI-based inflation rate increased 4.13 per cent from the previous week to the week ending October 27 while increasing 30.68 per cent from the same time last year.

    The cost of power, salt, rice, and other basic commodities went up on average during the previous week.

    According to Geo, there has been a decrease in the cost of 16 goods, including chicken, tomatoes, onions, and masoor pulses. In the meantime, the prices for 14 necessities remained the same.

    Electricity costs up by 89 per cent

    An increase from week to week is mostly caused by an 89 per cent increase in electricity costs.

    Recall that a negative Rs10 per unit adjustment to fuel prices was implemented in September. The government opted to postpone the Rs. 10 per unit adjustment for the June fuel price, but it had already been accounted for in the inflation figures for August, therefore it was corrected for in the September inflation figures.

    Inflation is expected to be 25.7 per cent in October, up from 23.2 per cent in September, according to the brokerage.

    In the week under examination, the combined income group index increased from 205.27 points for the week that concluded on October 20 to 213.74 points.

    In comparison to the prior week, the SPI for the income bracket with the lowest income rose by 4.64 per cent. The group’s index was 220.56 points, up from 210.78 points the previous week.

    Increase in prices

    Prices of the following items increased:

    Food items

    Salt powdered: 2.57 per cent

    Tea Lipton: 1.89 per cent

    Rice: 1.24 per cent

    Garlic: 1.04 per cent

    Non-food items

    Electricity charges for Q1: 89.34 per cent

    Energy saver: 1.57 per cent

    Reduction in prices

    Prices of the following items decreased:

    Food items

    Tomatoes: -3.77 per cent

    Onions: -2.97 per cent

    Pulse Masoor: -2.50 per cent

    Chicken: -1.86 per cent

    Pulse Gram: -1.35 per cent

    Gur: -1.09 per cent

    Non-food items

    LPG: -0.72 per cent

  • Kya log waqai mehngai se tang aa kar apna sona baich rahay hain?

    Kya log waqai mehngai se tang aa kar apna sona baich rahay hain?

    From meeting hospitalisation expenses to paying hefty electricity bills, Pakistanis are increasingly selling their gold jewellery to tide over inflation in Pakistan.

    This trend has been fueled by mounting expenses, such as expensive food products, rising petroleum prices, education fees, medical expenses, and house rents, in the face of low income. According to multiple sources in the jewellers’ association, there has been an upsurge in the number of people selling off gold as compared to buyers, in recent months.

    Several social media posts indicated that people were compelled to sell their gold in order to pay for their electricity bills after the government imposed hefty Fuel Cost Adjustment (FCA) charges in monthly electricity bills.

    The FCA was added to the electricity bills for the month of August, drawing protests from citizens who demanded the government immediately withdraw the FCA as it was an injustice to the consumers and they did not have the capacity to pay outrageous electricity bills.

    The Current contacted several jewellers in Lahore to uncover whether people were actually selling gold to pay their electricity bills.

    According to the owner of a renowned gold shop in Liberty Lahore, when inflation is high, people’s only alternative is to sell any gold they may have. “There are undoubtedly more sellers because gold prices have reached an all-time high at this time. Comparatively, there are noticeably more sellers than purchasers. Another reason for selling gold is to combat inflation.”

    When asked if locals were really selling gold to pay their power bills, the goldsmith responded, “People sell gold for many different purposes outside merely paying their electricity bills. A lot of people sell their gold in order to invest in more lucrative assets, this may not necessarily be about bills. A number of individuals sell gold in order to invest in real estate or build their own houses.”

    Owing to overall inflation, gold prices had hit an all-time high, but since last week, they have been steadily declining. The latest drop in gold prices also prompted people to sell their gold as it was the ideal time to get the best price and acquire other assets, as they could later buy gold at a lower price after its price is stabilised.

    The majority of gold jewellers in the vicinity of Lahore’s posh area asserted that this unquestionably occurs at a time when the country’s economy is unstable and consumers are left with no choice but to sell the assets they have been saving for years to utilise in crises.

    Another jewellery store owner in Lahore’s less well-off area admitted that “This happens,” but added that “Not everyone is willing to discuss their personal and financial concerns or reveal causes why they are selling gold and what they need money for. People visit our shops for reasons other than just paying their electricity bills, such as emergencies or the urgent need for cash to cover healthcare expenses.”

    Investors frequently turn to gold as a safe haven when the economy is struggling or when there are conflicts on an international scale. For investors looking for a safe investment with a proven track record of profitability, gold appears to be an attractive alternative in light of rising inflation and the stock market trading far below its highs.

  • PM Shehbaz announces relief for 17 million power consumers

    PM Shehbaz announces relief for 17 million power consumers

    Prime Minister Shehbaz Sharif stated that 17 million of the nation’s electricity consumers would not be required to pay the excessive fuel cost adjustment (FCA) charges that are included in their monthly bills.

    According to Express, the prime minister outlined the rationale behind the FCA and claimed that it had resulted in a substantial increase in power rates for July and August due to high international oil prices.

    He claimed that following discussions with the IMF, PML-N leader Nawaz Sharif, and other coalition leaders, it was decided that 17.1 million energy users would not be required to pay the FCA.

    The remaining 13 million power consumers who are in a better financial situation are also being reviewed by the government, according to PM Shehbaz.

    Later, the PML-N tweeted that the relaxation will only apply to people with low electricity consumption.

    Shehbaz stated that Power Minister Khurram Dastgir will give a thorough explanation of the announcement’s process and how it would actually operate.

    The FCA exception would also apply to tube well users, who the prime minister estimated to number approximately 300,000.

    Earlier, PM Shehbaz also abolished the budget’s fixed tax on traders.

  • Nepra approves price increase of Rs9.66 per unit for Karachi

    Nepra approves price increase of Rs9.66 per unit for Karachi

    On account of the fuel cost adjustment (FCA) for May 2022, the National Electric Electricity Regulatory Authority (Nepra) allowed K-Electric to increase its power rate by Rs9.66 per unit on Monday.

    According to Aaj News, Nepra will make the announcement following careful consideration.

    In order to transfer the financial burden of Rs22.65 billion to consumers for May 2022, K-Electric requested an increase of Rs11.34 per unit.

    Officials from Nepra questioned K-Electric during a hearing about why it wasn’t buying less expensive electricity and offered to help K-Electric establish a connection with the provincial and federal governments for this reason.

    The power distributor also questioned K-Electric’s decision not to use the inexpensive oil it had acquired for power production.

    Nepra’s representatives responded that the company was using peak hours, which are from 6:30 PM to 10:30 PM, to provide electricity and that the cost of power is much greater at these times.

    The FCA estimate for May 2022, according to K-Electric, was based on the requested rate for the month from CPPA-G and is subject to change based on a decision to be made by Nepra.

    In its FCA adjustment request, the power utility informed the regulator that it imports from outside sources and dispatches power from its own generating units (with the available fuel resources) in accordance with economic merit orders (EMOs).