Gas tariff increased by 18 per cent

ISLAMABAD: An across-the-board increase of 18 per cent in prices of natural gas for all categories of consumers — domestic, industrial, commercial and CNG stations — with immediate effect from Friday was notified by the Oil and Gas Regulatory Authority on Thursday night.

According to the notification, the increase will yield an additional revenue of about Rs21 billion to the Sui Northern Gas Pipelines Limited (SNGPL) and Rs11 billion to the Sui Southern Gas Company Limited (SSGCL) during the current fiscal year.

The notification was earlier approved by Prime Minister Yousuf Raza Gilani.

An increase of about Rs64.02 per million British Thermal Unit (mmbtu) has been allowed in the average sale rate of SNGPL to Rs296 per unit, up by about 18 per cent.

The average sale rate for SSGCL has been allowed to go up by Rs38.06 per mmbtu -- about nine per cent.

The average sale rate for all consumers of natural gas, bought either from SSGC or SNGPL, has been increased by 18 per cent to ensure uniform gas tariff across the country.

SNGPL and SSGCL had a couple of weeks ago sought an average increase in gas prices by about Rs80 per unit and Rs57 per mmbtu, respectively, through separate petitions to Ogra to meet their estimated revenue shortfalls during the current financial year. They said the increase was necessitated by a much

higher cost of gas because of rise in international oil prices and depreciation in the value of rupee against the US dollar.

The cost of domestic gas production is linked to international oil prices that have registered a substantial increase over the past six months.

Added to this is the impact of depreciation of the rupee against dollar because international gas producers are paid in foreign currency for whatever gas they produce from domestic gas fields.

Besides, the government is required under covenants with international lending agencies to ensure a minimum of 17 to 17.5 per cent guaranteed rate of return to SNGPL and SSGCL.

DOMESTIC CONSUMERS

According to the notification, gas rates for the lowest slab (50 cubic metres per month) of domestic consumers have gone up from Rs80.65 to Rs95.01 per mmbtu and that of the second slab (50-100 cubic metres) from Rs84.45 to Rs99.48.

Likewise, rates for the third slab (100-200 cubic metres) have been increased from Rs153.73 to Rs181.10 per unit and that of the fourth slab (200-300 cubic metres) from Rs325.48 to Rs383.42.

Gas rates for fifth slab (300-400 cubic metres) have been increased from Rs423.42 to Rs498.80 per unit, followed by the sixth slab (400-500 per cubic metres) from Rs550.44 to Rs648.43 per unit and the last slab (over 500 cubic metres) from Rs730.17 to Rs860.15.

Rates for non-profit consumers like places of worship, educational institutions and armed forces’ mess, along with tandoors have been increased equal to the first four slabs of domestic consumers.

Gas rates for commercial consumers and ice factories have gone up from Rs393.48 to Rs463.76 per unit.

Rates for industrial consumers and fuel for fertiliser factories have been increased from Rs324.30 to Rs382.37 per unit. Rates for CNG stations have been increased from Rs427.15 to Rs503.64 per unit.

POWER STATIONS

Rates for Wapda’s power stations have gone up from Rs333.98 to Rs394 per unit and that of Liberty Power Project from Rs1060.4 to Rs860.

Gas tariff for independent power producers (IPPs) has gone up from Rs282.88 to Rs332.36 and that of captive power plants (CPPs) from Rs324.30 to Rs382.37.

According to the notification, CNG rates for the Potohar region have been increased from Rs49.73 per kg to Rs55.30 per kg and those for Sindh and Punjab from Rs48.54 per kg to Rs53.63 per kg