No change in gas price for 1st slab domestic consumers, export industry

ISLAMABAD: Petroleum Division Tuesday clarified that there was no change in gas price for the first slab of domestic consumers, export industry and fertilizer companies.

Commenting on price revision notification of Oil and Gas Regulatory Authority (OGRA), a spokesman of the division said the government was making all-out efforts to provide relief to domestic consumers, export industry and fertilizer companies, a Petroleum Division press release said.

He said utmost effort had been made to put minimum burden on the business community so that economic activities could continue in a smooth manner.

He reminded that OGRA in its notification had also mentioned about benefit of one previous/preceding slab to domestic consumers.

The spokesman said OGRA had proposed up to 205 percent increase in gas price for domestic sector, but the government decided to keep first slab, which was about usage of up to 0.5hm3 (in cubic hectometers) gas per month at a rate of Rs 121 per Million British Thermal Unit (MMBTU), unchanged.

He said gas quantity mentioned in the first slab was sufficient for cooking needs of domestic kitchen, except the heating requirements in winter season.

In this category, he said, the government was giving substantial subsidy and consumers paid only 16 percent of original cost/rate.

Similarly, he said, around 25 to 60 percent concession was being given to consumers falling in second and third slabs.

Besides, he said a reasonable increase had been made for the fourth slab consumers as gas consumed in this category was equal to the quantity used in 22 Liquefied Petroleum Gas (LPG) cylinders per month, while in the last slab gas was consumed equal to 37 LPG cylinders.

The spokesman said OGRA had determined 31 percent increase for industrial consumers, however, the government had got approved 50 percent reduction in Gas Infrastructure Development Cess (GIDC) from the cabinet, which would be presented in Parliament for approval through necessary amendment in the relevant law. So, this increase would be brought down to 12 to 18 percent.