The government on Saturday announced increase in gas prices for domestic and commercial consumers by 9.5 percent and 15.51 percent, respectively, from January 1, 2006.
Giving the break-up of the increase, Secretary, Petroleum, Ahmed Waqar, said that it was Rs 7.03 (9.5 percent) for first slab consumers (consumed up to 100 cubic metres), which are mainly the domestic consumers, Rs 19.8 for second slab (100-200 cubic metres), Rs 31.67 for third slab (200-300 cubic metres) and Rs 41.20 for fourth slab (over 300 cubic metres).
The 15.51 percent increase for commercial consumers is Rs 36.40, whereas it is Rs 32.35 for industrial, CNG, power and captive stations, and Rs 37.27 for cement factories, he said.
There is no increase in gas prices for fertiliser companies for feed stock. So, gas supply to Pak American, Pak Arab, Dawood Hercules, Pak China/Hazara and FFC Jordan would be the already notified rates, but 15.51 percent increase in gas prices would be applicable on fertiliser companies also if they used it as fuel, Waqar said.
The Secretary said that despite increase in prices of gas, it was still a cheaper source of combustion than other sources like LPG, kerosene oil and firewood.
The Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Pipelines Limited (SSGP) faced a revenue shortfall of Rs 6.8 billion and Rs 3.9 billion from July to December forcing the companies with no other option but only to seek increase in prices, he said.
The prices of gas are linked with crude and furnace oil. The average price of crude oil fluctuated between $46.38 and $56.59 showing an increase of 28 percent from Jun to November Price of furnace oil stood at $2.07 and $2.89 per ton showing an increase of 37 percent from June-November 2005.
"Therefore, we endorsed the determination of Oil and Gas Regulatory Authority (Ogra)," the Secretary said.
Comparing gas prices with India, Waqar said that consumer prices in India hovered between Rs 244 and 309 MMBT, whereas in Pakistan these range from Rs 81 to Rs 277, and added that Indian gas companies pay $3-4.5 to producers while in Pakistan, the rate is $2-2.5.
About fixing oil prices by Ogra, he said that the Advisor''s report had been sent to Ministry of Law for vetting. He opined in his report that oil price fixing by Oil Companies Advisory Committee (OCAC) could be transferred to Oil Gas Regulatory Authority (Ogra).
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INCREASE IN GAS SALE PRICES
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Domestic Sector w.e.f.01.07.200 w.e.f 01.01.2006
Rs /MMBTU Rs MMBTU % increase
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1st slab (upto l00m3 per month) 73.95 80.98 9.50%
2nd slab (over 100-200m3 per month) 127.62 147.41 15.51%
3rd slab (over 200-300m3 per month) 204.17 235.84 15.51%
4th slab (over 300 m3 per month) 265.59 306.79 15.51%
Commercial Consumers 234.67 271.07 15.51%
Industrial Consumers 208.56 240.91 15.51%
CNG Station 208.56 240.91 15.51%
Cement Factories 240.28 277.55 15.51%
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Fertiliser Companies:
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-Feed stock:
Pak American 36.77 36.77 00.00%
Pak Arab 83.24 83.24 00.00%
Dawood Hercules 83.24 83.24 00.00%
PakChina/Hazara 88.34 88.34 00.00%
FFC Jordan 36.77 36.77 00.00%
-Fuel 208.56 240.91 15.51%
Power Stations 208.56 240.91 15.51%
Captive Power 208.56 240.91 15.51%
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