In July 2024, milk prices in Islamabad have surged following an announcement by the dairy association. Effective from July 5, 2024, the association has implemented a Rs20 per litre increase, raising the price from Rs220 to Rs240 per litre. This adjustment was attributed to rising electricity costs and other factors impacting production expenses.
The association highlighted the recent government announcement of increased power tariffs as a contributing factor, noting ongoing considerations regarding further price adjustments. The Finance Division recently issued a notification approving a base tariff hike of up to Rs7.12 per unit, sanctioned by the government and the National Electric Power Regulatory Authority (Nepra).
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Under the new tariff structure, lifeline consumers using up to 50 units per month will continue paying Rs3.95 per unit, while those consuming 51 to 100 units will pay Rs7.74 per unit. Consumers using up to 200 units per month will maintain the old tariff rates during July, August, and September, exempting them from immediate increases.
For higher consumption brackets, the tariff increases include Rs7.12 per unit for 201 to 300 units (new rate: Rs34.26), Rs7.02 per unit for 301 to 400 units (new rate: Rs39.15), and Rs6.12 per unit for 401 to 500 units (new rate: Rs41.36). Rates for 501 to 600 units will be Rs42.78 per unit, reflecting a Rs6.12 increase, and for 601 to 700 units, Rs43.92 per unit, similarly increased by Rs6.12. Consumption exceeding 700 units will see rates rise to Rs48.84 per unit, after a Rs6.12 increase. The adjustments in milk prices and electricity tariffs aim to address increased production costs and ensure sustainability amid economic challenges.
