ISLAMABAD: Protected consumers face a gradual increase in tariff slabs (Rs. 80-100/MMBtu) with a cross subsidy of Rs 108 billion, while unprotected consumers see a larger increase (Rs. 200-300/MMBtu). monthly fixed charges remain unchanged with effect from February 1, 2024.
Oil and Gas Regulatory Authority (OGRA) on Thursday notified the revised sale price of natural gas in line with the decision of federal cabinet which met on Thursday.
New gas prices aimed at meeting the International Monetary Fund’s (IMF) condition to raise prices by February 15th. The IMF also emphasized to continue cross subsidy on protected category till the provision of financial support from BISP.
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According to notification, tariff for bulk consumption is set to rise from Rs. 2,000 to Rs. 2,900/MMBtu. Special commercial (Roti Tandoor) sees a flat rate of Rs. 700/MMBtu, unchanged since 2015.
For Fertilizer sector prices for Engro Fertilizer Company Limited till February 29, 2024 at $0.70 per mmbtu and Rs 1597 per mmbtu with effect from March 1, 2024. M/s Agritech Limited, Fatima Fertilizer and Fauji Fertilizer plants are fixed at Rs 1597 per mmbtu, aligning with the average prescribed price.
The rate is increased for the feed gas prices for Engro Fertiliser from Rs200 to Rs1,597 per mmbtu a surge of 700 percent. The gas prices increased for Fauji Fertiliser Bin Qasim Limited (FFBQL) from Rs580 to Rs1,597 mmbtu, showing an increase of 175 percent.
Agritech and Fatima Fertiliser are currently getting RLNG from SNGPL network. The approved increase is by 29 percent to Rs1,597 per mmbtu.
The tariff is increased from Rs. 3,600 to Rs. 3,750/MMBtu, equivalent to the RLNG price, reflecting the majority fuel cost for CNG producers.
The federal cabinet on Thursday increased gas prices for residential users up to 66 and for fertiliser plants by 700 percent to meet estimated revenue requirements of Rs242 billions of both gas companies- Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC).
The OGRA determined to raise prescribed prices for Fiscal 2023-24 for both SNGPL and SSGC by 36 percent and 5 percent. SNGPL requires a revenue of Rs592 billion and SSGCL requires a revenue of Rs310 billion in current fiscal year. Total revenue requirement has been determined at Rs902 billion arriving at an average prescribed price of Rs1,596 per mmbtu.
It is the third increase in the gas prices that the consumer would bear since January 1, 2023.
The new revision has put the extra burden on the most vulnerable households upto 65 percent or Rs100 increase per unit for the domestic monthly consumption of 0.5 cubic hectometers (HM3).
The rates for 1.5 Hm3 consumers have been increased to Rs1,450 or 21 percent higher. The new prices for the 2 hm3 monthly consumption rates are Rs1,900 up by 19 percent and Rs300 more than the cost of gas they need to pay. For the slab of 3 Hms consumption, the new rate is Rs3,300 close to the RLNG rate of Rs3,750.
Copyright Business Recorder, 2024
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