OGRA approves up to 191pc increase in gas prices

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ISLAMABAD: In order to meet the revenue shortfall of the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), the Oil and Gas Regulatory Authority (OGRA) has approved 17pc to 191pc increase in the gas prices for the period starting from January 2020 till June 2020.

This would be the third massive surge in gas prices under the rule of Pakistan Tehreek-e-Insaf (PTI) government.

According to details, the gas price for domestic gas consumers has been increased by 191pc, while that for the fertilizer sector has been hiked by 135pc hike. Similarly, a 31pc surge has been approved for consumers falling under the category of roti tandoor, commercial, industrial, zero-rated export industry, captive power plants, compressed natural gas (CNG), cement and power plants.

Following the OGRA’s decision, SNGPL would earn a revenue of around Rs244 billion while SSGCL would earn approximately Rs275 billion during the said period. With effect to this increase, the price of local gas for CNG consumers in Khyber Pakhtunkhwa, Balochistan and Sindh would be more expensive than imported gas.

As per the documents, tariff for the first slab of domestic gas consumers has been increased from Rs121 per Million British Thermal Unit (MMBTU) to Rs353.26/MMBTU; second slab tariff has been increased from Rs300/MMBTU to Rs353/MMBTU; third slab tariff has been fixed at Rs530/MMBTU; fourth at Rs706/MMBTU; fifth at Rs1,273/MMBTU; while sixth tariff slab has been fixed at Rs1,679/MMBTU.

Similarly, the tariff for roti tandoor category of gas consumers has been jacked up from Rs780/MMBTU to Rs1,026/MMBTU, while that for commercial gas consumer has been increased from Rs1,283/MMBTU to Rs1,687/MMBTU.

The tariff for general industry has been increased from Rs1,021/MMBTU to Rs1,343/MMBTU; zero-rated industry from Rs786/MMBTU to Rs1,033/MMBTU; captive power plants from Rs1,021/MMBTU to Rs1,343/MMBTU, CNG from Rs1,283/MMBTU to 1,687/MMBTU, fertiliser from Rs300/MMBTU to Rs706/MMBTU and power plants from Rs824/MMBTU to Rs 1083/MMBTU.

It is pertinent to mention that the government is yet to pay back Rs24 billion to the gas consumers, which it had collected from them through heavy gas bills during the last winter season.

6 COMMENTS

  1. When paying the monthly domestic gas bills of Rs 300-400 every month, one does feel that these bills are very low. With doubling of rates the gas bills would now be Rs 600-800 per month, which is still reasonable, and people would be more careful about not wasting this valuable resource.

  2. Gas bills are quite low when we compare it to electricity and telephonic monthly expenses. Even Water charges are way higher for Karachiites even when water doesnt come for full week. Gas on the other hand is available 24 hours yet we get only Rs 200 to 400 bill. It cannot remain so much subsidized in a debt laden country that has to import oil / gas to meet its fuel, power & energy requirements.

  3. Very nice coverage. The Climate Change phenomenon will be the last resort for those who care. The solar water heater, the EV transport, the solar recharging roof panel which energises the car using the Lithium batteries in the shortest possible time and may also energise your car airconditioning which means heating, cooling, ventilation and recharging your battery. This pattern has to work with the buses immune from the fossil fuel, gasoline, diesel, CNG. Nothing only Lithium battery and Charging stations will be all petrol pumps/gas stations will be charging the cars, buses, truks, motor cycle will all be charging the transport from the Solar PV to the cars, buses, trucks, fire brigades, ambulances all fart free.
    Relax with Climate Change in your car Airconditioning/Heater during winter, summer free of cost all fart free.

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