OGRA to Approve 245% Increase in Gas Prices: Reports

Oil and Gas Regulatory Authority (OGRA) has reportedly authorized Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) to raise the gas prices from January to June 2020. Various gas consumer sectors will have to bear up to a 245% increase in gas prices.

According to reports, domestic gas consumers will suffer the most from the latest price hike as they face a 214% hike in their gas tariffs.

Consumers falling under the categories of power plants, industrial, commercial, cement, captive power plants, and zero-rated export industry will also have to deal with the price hike. Gas prices for the fertilizer, roti tandoor, and CNG sectors have been increased by 153%, 245%, and 31% respectively.

OGRA’s decision will allow SNGPL and SSGCL to meet their revenue shortfall and earn Rs. 244 billion and Rs. 275 billion respectively.

Gas Prices for Domestic Consumers

The gas prices for the first slab of domestic gas consumers have been raised from Rs. 121/MMBTU to Rs. 232/MMBTU. Gas prices for the second slab of consumers have been increased from Rs. 300/MMBTU to Rs. 353/MMBTU.

The third and fourth slab tariffs have been set at Rs. 530/MMBTU and Rs. 706/MMBTU respectively. After the latest increase, the fifth and sixth slab tariffs have been fixed at Rs. 1,273/MMBTU and Rs. 1,679/MMBTU.

Other Consumers

Prices for commercial consumers have been hiked from Rs. 1,283/MMBTU to Rs. 1,687/MMBTU. Tariffs for industrial consumers have been increased from Rs. 1,021/MMBTU to Rs. 1,343/MMBTU while gas prices for tandoor owners have been increased from Rs. 780/MMBTU to Rs. 1,026/MMBTU.

Moreover, prices for the fertilizer sector have been raised from Rs. 300/MMBTU to Rs. 706/MMBTU. Gas prices for captive power plants have been increased from Rs. 1,021/MMBTU to Rs. 1,343/MMBTU. Tariffs for the zero-rated industry have been increased from Rs. 786/MMBTU to Rs. 1,033/MMBTU.

The new tariffs for CNG and power plant sectors have been fixed at Rs. 1,687/MMBTU and Rs. 1083/MMBTU respectively.

The new gas prices will be applicable from January 1, 2020.

Via: Dunya, Pakistan Today



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