• Thu. Jun 13th, 2024

Shocking Announcement: Natural Gas Rates to Increase from April 1st, Affecting High-Income Households and Businesses

BySamantha Johnson

Mar 27, 2024
Removal of subsidies could lead to over 500% increases for homes, industries, and businesses

In a shocking announcement, the Government has revealed that natural gas rates will increase from April 1st. This hike, which was originally planned for February, will see high-income households, businesses, and industries face a significant price increase.

The Ministry of Energy and the National Gas Regulatory Entity (Enargas) had been working to implement these increases in February but were forced to delay due to concerns over inflation. However, with the current fiscal situation and state of the energy sector, it was no longer possible to postpone the decision.

The new resolution establishes wholesale gas prices at the Point of Entry to the Transportation System (PIST), which combines local production and imports. The overall bill includes transportation, distribution, and tax margins. While official sources have not yet provided any information on how this will impact users, it is likely that residential users will see varying increases in gas prices based on their income category.

Residential users in different categories are expected to experience different price increases. For example, N1 households and some non-domestic users may see a nearly tripled gas price in April while low-income N2 users may experience a more moderate increase. Prices are expected to continue rising between May and September as well.

The companies in the energy sector had requested a significant increase in income to make up for tariff arrears accumulated since 2019. The delay in updates and devaluation of the peso against the dollar have contributed to this current situation. Despite these challenges, the Government is working with sector executives to ensure a sustainable energy system for future needs.

This rise in bills will be most noticeable during winter months when consumption is higher.

Overall, this news comes as a surprise to many consumers who have already been struggling with rising living costs due to inflationary pressures.

With just days left before April 1st arrives, it’s important for consumers to prepare themselves for this sudden hike in natural gas rates.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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