OGRA proposes up to 214pc increase in gas price for domestic consumers from Jan 2020

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Tuesday proposed to the government an increase of up to 213.7 percent gas price hike for domestic consumers from January 2020.

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The government would notify OGRA within 40 days after its notification, leading to Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGCL) to collect billions from consumers. The increase would mean SNGPL, which provides gas supply to Punjab and KP would collect around Rs244 billion and SSGCL, which supplies gas to the consumers in Sindh and Balochistan would collect Rs275 billion.

It is pertinent to mention here that this is the second time gas prices have been increased during the incumbent government’s tenure.

The federal government will notify new gas price from January next year.

The highest increase for domestic gas consumers falling in first slab of SNGPL is by 213.7 percent and 192 percent for SNGPL consumers.

The regulator has decided to increase gas price for domestic gas consumers by 191 per cent, 135 per cent for fertilizer sector, 31 per cent for consumers falling under the category of roti tandoor, commercial, industrial, zero-rated export industry, captive power plants, compressed natural gas (CNG), cement and power plants.

The tariff for the first slab of domestic gas consumers of SNGPL has been hiked from Rs121 per Million British Thermal Unit (mmbtu) to Rs353.26/mmbtu; second slab tariff increased from Rs300/mmbtu to Rs353.46/mmbtu. For the third slab the tariff has been reduced from Rs553 to Rs530/mmbtu and the fourth slab’s tariff has also been reduced to Rs706.9/mmbtu from Rs738/mmbtu.

The tariff for the fifth slab has been increased to Rs1,273/mmbtu from Rs1,107/mmbtu along with the sixth slab from 1,460/mmbtu to Rs1,679/mmbtu.

For government, semi government offices, hospitals, clinics, maternity homes, government guest houses, armed forces messes, universities, colleges, schools, and private educational institution, orphanages and other charitable institutions along with hostels and residential colonies to whom gas is supplied through bulk meters including captive power, the tariff has been increased from Rs780/mmbtu to 1026.1/mmbtu.

For roti tandoors, gas tariff for consumers consuming up to 1.0 hm3/month has been increased from Rs110 to 353.46/mmbtu and for those consuming more than 1.0 hm3 to three hm3/month has been increased from current Rs220/mmbtu to Rs706.19/mmbtu. For those consuming more than 3 hm3, the tariff has been increased from current Rs700/mmbtu to 920.86/mmbtu.

For commercial sector including ice factories, tariff has been increased from Rs1283 to 1687.8/unit. For general industry, the tariff has been increased from 1,021 to Rs1343.14/mmbtu. For registered manufacturers or exporters of five zero rated sector and their captive power namely textile (including jute), carpets, leather, sports and surgical goods the tariff at flat rate has been increased 786 to 1,033.99/mmbtu. For CNG stations, the gas tariff has been increased from 1283 to Rs1,687.8/mmbtu. For cement factories too, the gas tariff has been hiked from 1,277 to Rs1,679.9/mmbtu.

For first slab of domestic consumer on SSGCL system, the tariff has been increased from Rs121/mmbtu to Rs379.62/mmbtu, second slab tariff Rs300/mmbtu to Rs379.62/mmbtu; third slab Rs553 to RsRs569.43/mmbtu. The tariff of fourth slab has been increased to Rs759.24/mmbtu from Rs738. Interestingly, tariffs for fifth and sixth slabs have been reduced to Rs1,091.87/mmbtu from Rs1,107 and Rs1440.05/mmbtu from Rs1460 per mmbtu respectively.

Gas tariff for commercial gas consumer including ice factories has been reduced from Rs1,254.89/mmbtu to Rs1,237.74/mmbtu.

The tariff for industry has been reduced from Rs998.79/mmbtu to Rs985.14/mmbtu. For registered manufacturers or exporters of five zero rated sector and their captive power namely textile (including jute), carpets, leather, sports and surgical good the tariff at flat rate has been reduced to Rs757.8/mmbtu from Rs768.31/mmbtu. Tariff on gas to CNG station has been cut to Rs1,237.74/mmbtu from current 1,254.89/mmbtu.

In the Southern region, gas tariff for cement factories has been reduced to 1231.43/mmbtu from 1,248.49. For power stations and IPPs, tariff has been cut down to Rs794.43/mmbtu from current Rs805.44/mmbtu.

Pakistan Steel will also get gas at lower price and its tariff has been decided at Rs985.14/mmbtu against current tariff of 998.79/unit.

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