Natural Gas tariff raised by 18%

[Naveed Yaseen]

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday allowed an across the board 18 per cent increase in natural gas tariff for all categories of consumers – domestic, industrial, commercial and CNG stations -- with effect from January 1, next year.

Sources in the Petroleum Ministry told Dawn that a summary for the increase had been received from Ogra. The increase would yield Rs21 billion additional revenue to the Sui Northern Gas Pipelines Limited (SNGPL) and Rs11 billion to the Sui Southern Gas Company Limited (SSGCL) during the current fiscal year.

Ogra determined the increase through a process of public hearings held recently in Karachi and Lahore where representatives of categories of consumers opposed the increase on the ground that it would make input costs unbearable for industries and exports and push up prices of all commodities and reduce purchasing power of the people.

The government, the sources said, was bound by law and commitments to international lending agencies to notify the average increase determined by Ogra on or before January 1, 2010.

The sources said Ogra had allowed about Rs64.02 per million British Thermal Unit (MMBTU) increase in the average rate of SNGPL to Rs296 per unit, up by about 18 per cent. Likewise, the average rate for SSGCL has been allowed to be increased by Rs38.06 per MMBTU, up by about 9 per cent. The average rate for all consumers, of both the SSGC and SNGPL, would go up by 18 per cent to ensure uniform gas price across the country.

DOMESTIC CONSUMERS:

According to Ogra’s gas price determination, tariff for the lowest slab (50 cubic metres per month) of domestic consumers would go up from Rs80.65 to Rs95.20 per MMBTU and for the second slab (50 – 100 cubic metres) from Rs84.45 to Rs99.65 per unit. The rates for the third slab (100 – 200 cubic metres) would rise from 153.73 to Rs181.40 and for the fourth slab (200 – 300 cubic metres) it would jump from Rs325.48 to Rs348.07 per MMBTU. The domestic gas rate for the fifth slab (300 – 400 cubic metres) would increase from Rs423.42 to Rs499.64 per unit, for the sixth slab (400 – 500 cubic metres) from Rs550.44 to Rs649.52 per unit and the last slab (over 500 cubic metres) from Rs730.17 to Rs861.60 per MMBTU.

The gas rate for places of worship, educational institutions and armed forces and roti tandoors would also increase like the first four slabs of domestic gas consumers and for commercial consumers and ice factories from Rs324.30 to Rs382.67 per unit and for CNG stations from Rs427.15 to Rs504 per MMBTU.

POWER STATIONS:

The gas price for Wapda’s power stations has been allowed to be raised from Rs333.98 to Rs394 per unit and for Liberty Power Project from Rs1060.4 to Rs1251.26 per MMBTU. Likewise, the gas price for independent power producers would increase from Rs282.88 to Rs332.62 and that of captive power plants from Rs324.30 to Rs382.67 per MMBTU.


http://www.dawn.com/wps/wcm/connect/dawn...llowed-119