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ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) in accordance with the policy guidelines of the federal government, Wednesday, notified the natural gas sale prices effective from November 1, 2023.

The federal government under section 7(1) 8(3) and 21(2)(h ) of the Ogra Ordinance, 2002, advised the revised category-wise natural gas sale prices to the Ogra for notification.

The federal government has the sole jurisdiction to fix sale prices for different categories of consumers of natural gas considering socioeconomic agenda and sectoral policies while making adjustments in cross-subsidy and gas development surcharge, the Ogra said in a statement.

Massive hike in gas tariffs now seems inevitable

On October 23, 2023, the interim cabinet approved a substantial increase in natural gas tariff by up to 193 percent to meet one of the conditionalities of International Monetary Fund (IMF).

The interim government repeatedly stated the revision of gas price has been pending since July 1, 2023, which was not done and resulted in revenue shortfall of Rs46 billion for the period July to September 2023, and in case of inaction it will reach to Rs395 billion by June 2024. The diversion of RLNG will result in a deficit of Rs210 billion in the current winter.

The fixed monthly charges for domestic protected consumers have seen a substantial rise from Rs10 to Rs400. For non-protected consumers, the charges have been divided into two slabs. The first category, up to 1.5 hm3, has seen an increase from Rs460 to Rs1,000. For the second category, above 1.5 hm3, the charges have been raised from Rs460 to Rs2,000.

While the tariff for the protected consumers remains unchanged, there has been a significant adjustment in the fixed monthly charges for this category. These charges have been escalated from the existing Rs10 to Rs400 per month. This has jumped the annual bill of this category up to Rs1300 or 157 percent.

For domestic protected consumers, a significant increase was approved in gas rates. The rates will rise by 50pc to Rs300 per mmbtu for consumption of up to 0.25 hcm, double to Rs600 per mmBtu for 0.6 hcm, and surge by 150 percent to Rs1,000 for up to 1 hcm.

The most substantial increase of 173 percent was made in the slab up to 3 hcm, where the prices will raise to Rs3,000 per mmbtu from the current Rs1,100.

The interim government reportedly directed that the revenue collected from fixed charges be allowed as “non-operating” income to the Sui companies to offset the undue burden of socio-economic losses including Balochistan and RLNG diversion to the domestic sector in the North.

The tariff for bulk consumption was increased by a quarter from Rs1,600 per mmbtu to Rs2,000. However, the special commercial category (tandoor roti) remains unchanged at Rs697 per mmbtu.

For commercial consumers, a significant tariff hike of over 136 percent was approved, raising the rate to Rs3,900 per mmbtu. Cement factories and CNG stations have faced an increase of more than 193 percent and 144 percent respectively, bringing the tariff to Rs4,400.

Export industries tariff was increased 86 percent to Rs2,050 per mmbtu, while non-export industries tariff increased by 118 percent to Rs2,600.

Copyright Business Recorder, 2023

Comments

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Syed Kashif Shah Nov 09, 2023 07:56pm
Nice
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Ghareeb Awam Nov 10, 2023 05:46am
What about revised price for consumers using gas cylinders?
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Murtaza Nov 11, 2023 12:40am
There is no light in summer but the bills are touching the sky now new thing there is no gas in winter and the bills are rasing more than expectation what is government doing if they are fail to relief peoples problem why there are sitting on the seat if they are failer who told them to come and Create problem for the people of pakistan
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