CNG, power, general industry: Increase in gas prices notified by Ogra

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) notified on Monday an increase in gas prices for CNG, power, general industry and export-oriented general industry, while maintaining the prices for domestic consumers and roti tandoors, with effect from September 1, 2020.

According to the notification of the oil and gas regulator, the federal government maintained gas prices for domestic consumers and roti tandoors for provision of roti and naan at an affordable price at the level of July 1, 2019.

The regulator notified hike in gas prices for other sectors such as the CNG, power, general industry and export-oriented general industry by Rs33 per mmbtu; however, no increase in price of gas for the commercial consumers. The commercial sector will continue paying price of gas at Rs1,283 per mmbtu.

The gas price for power sector including the Independent Power Producers (IPPs) was hiked by Rs33 per mmbtu from Rs824 to Rs857 per mmbtu. It would also result in hike in power tariff for the consumers. The gas price for general industry hiked from Rs1,021 to Rs 1,054 per mmbtu.

The gas price for CNG sector increased to Rs1,350 for CNG stations in region-2 and Rs1,371 per mmbtu for region-1 against Rs1,283 per mmbtu. The government decided to maintain gas price for cement sector at Rs1,277 per mmbtu. Following announcement of the government for real estate sector to boost economic activity amid Covid-19, the gas prices kept unchanged for cement sector- a relief to the developers of low-cost housing schemes of the government.

The price for Export-Oriented (Captive) plants increased from Rs786 to Rs852 per mmbtu. The gas price for general industry increased from Rs1,021 to Rs1,054 per mmbtu. The gas price for export-oriented (general industry) increased from Rs786 to Rs819 per mmbtu.

The price of fertiliser gas being used as feed stock for old plants has only been increased by Rs2 mmbtu from Rs300 to Rs302 per mmbtu. The price of new fertiliser plants has been maintained at $0.70 per mmbtu. Earlier, the oil and gas regulator turned down a demand of the gas companies-Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern gas Company Ltd (SSGCL) to make an increase in gas prices.

In a decision sent to the federal government, the regulator had recommended to slash prices for the consumers of gas utility companies - Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) by six percent and SSGCL two percent respectively for financial year 2020-21.

The regulator had decided to cut prescribed gas price from Rs664.25 per mmbtu to Rs623.31 per mmbtu registering a reduction of six percent. The Ogra reduced price to Rs750.90 per mmbtu registering a reduction of two percent. However, the government decided to maintain the price of gas for domestic consumers, reduced price for roti tandoors, and increased for other consumers.

Copyright Business Recorder, 2020