The Oil and Gas Regulatory Authority (OGRA) notified on Friday an increase of up to 39 percent in the minimum charges for gas consumers, other than domestic consumers, with effect from July 1, 2019. The notification states that the OGRA in supersession of its notification No. SRO 795 (I)/ 2019 dated June 29, 2019 is pleased to notify the sale price and minimum charges in respect of natural gas sold by the Sui gas companies to various categories of their retail consumers with effect from July 1, 2019.
According to notification of OGRA, the new minimum charges on sale of gas has been increased by 39 percent for general industry, CNG, cement, power, independent power producers (IPPs), zero rated registered exporters/ manufacturers and their captive powers. Minimum sale gas price for general industry consumers, who are engaged in the processing of industrial raw material into value-added finished products irrespective of the volume of gas consumed, has been prescribed, which has a separate rate.
For this category, the minimum charges have increased from Rs 26,301.60 to Rs 36,449.70 per month. The increase is recorded at Rs 10,148.10 per month. The regulator also increased the minimum charges of registered manufacturers or exporters of five zero-rated sectors and their captive power namely: textile (including jute) carpets, leathers, sports and surgical goods from Rs 20,232 per month to Rs 28,060.20 per month. This category will face an increase of Rs 7828.20 per month.
Monthly minimum gas charges have also been increased for CNG sector by Rs 12,757.50 from Rs 33045.60 to Rs 45,803.10. The monthly minimum charges of cement sector also increased by Rs 12,711.90 from Rs 32,877 to Rs 45,588.90. The regulator also increased the minimum gas sale charges for captive power of industrial units from Rs 21,209.88 to Rs 36,449.70 per month. The minimum gas sale charges of IPPs also increased by Rs 8,206.92 from Rs 21,209.88 to Rs 29,416.80 per month.
The minimum charges for commercial consumers have been increased by 9 percent. However, the regulator has decreased minimum charges on gas sale by 16 percent for bulk domestic consumers. Commercial consumers included cafes, bakeries, milk shops, tea stalls, canteens, barber shops, laundries, hotels (hotel industry, malls, places of entertainment like cinemas, clubs, theaters and private offices, corporate firms etc) and ice factories.
Minimum charges of bulk commercial consumers have been increased from Rs 5,880.10 per month to Rs 6,415.00 per month. There is an increase of Rs 534.9 or 9 percent increase. Consumers falling under bulk domestic consumers include orphanages, charitable organisations, residential consumers with bulk meters, government hospitals, clinics, maternity homes, government guesthouses and offices, armed forces' messes, universities, colleges, schools and private educational institutions. "Minimum charges of this category have been revised downward from Rs 4,680.09 to Rs 3,900 ( Rs 780 or 16 percent reduction).
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