• Mon. May 20th, 2024

Gas Prices Set to Triple from April 1st: High-Income Households, Businesses and Industries Brace for Impact

BySamantha Jones

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

In a shocking announcement, the Government has decided to increase natural gas rates for all consumers starting from Monday, April 1. This move is expected to result in a significant rise in energy bills, with high-income households, businesses, and industries likely to be hit the hardest. The price of gas is set to at least triple next month, with another extra jump between May and September.

The official definition of the rate increase comes two months late due to concerns about inflation. The Ministry of Energy and the National Gas Regulatory Entity (Enargas) were prepared to implement the increases in February but were forced to delay them due to political reasons. However, with the fiscal situation and overall context of the energy sector worsening, the decision had to be made sooner or later.

The Energy resolution 41/2024 establishes new wholesale gas prices at the Point of Entry to the Transportation System (PIST), which is 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 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. Despite concerns about the impact on low- and middle-income households, this move is part of the Government’s efforts to reduce energy subsidies and realign rates with actual supply costs. It remains unclear how this decision will affect different user segments differently but one thing is certain – energy bills are set to rise significantly from April 1st onwards.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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