ISLAMABAD: The federal government revised the category-wise consumer gas prices with effect from January 1, this year, to meet revenues of Sui companies during current financial year and to avoid flow of circular debt — and the concept of protected and non-protected was introduced with the aim that poor segment to be protected from price increase whereas high-end user to pay for the actual cost of gas, Petroleum Division informed the Senate on Tuesday.
Under Section 8(1) and (3) of the Ogra Ordinance 2002, Oil and Gas Regulatory Authority (Ogra) determines an estimate of the total revenue requirement of both Sui companies for natural gas, reads a reply from the Petroleum Division shared in the Senate session, to a question posed by Mushtaq Ahmed Khan from Jamaat-e-Islami (JI).
The JI senator sought from the Petroleum Division the reasons of substantial increase in natural gas prices from January 1, this year, for domestic consumers (both protected and unprotected).
“The federal government accordingly within 40 days — to advice the authority of minimum charges and the sale price for each category of retail consumer, based on the determination of estimated revenue requirement (ERR) for fiscal year 2022-23 by Ogra, the government was required to revise the gas prices w.e.f 01-07-2022, however, the said decision was deferred.
Later, based on revised estimated revenue requirements, the government revised the category-wise consumer gas prices w.e.f 01-01-2023 to meet revenues of Sui companies during current financial year and to avoid flow of circular debt.
The concept of protected and non-protected was introduced with the aim that poor segment to be protected from price increase whereas high end user to pay for the actual cost of gas,” the Petroleum Division replied.
Speaking on the floor of the house, State Law Minister Shahadat Awan said, gas supply situation for the consumers is “better this year as compared to the previous years because of the timely steps taken by the government.”
Meanwhile, Senate passed the government’s Pakistan Council of Research in Water Resources Amendment Bill 2023 that deals with recruitments at Pakistan Council of Research in Water Resources (PCRWR).
The PCRWR was established in 1964 and is working as a body corporate vide PCRWR Act 2007 under Ministry of Science and Technology (MoST), according to the statement of objects and reasons of this bill.
According to PCRWR Act 2007, rules of PCRWR shall have provision for two-track appointments: contractual and permanent which is a complicated way of recruitment as it allows to advertise a specific post twice, the statement said. In order to make recruitment process simple and much transparent, the amendment is proposed in the act, the statement added. The house was adjourned till Friday.
Copyright Business Recorder, 2023