Raise in gas prices notified by Ogra

Oil and Gas Regulatory Authority (Ogra) on Thursday notified new sale prices of natural gas being sold by gas utility companies to various categories of their retail consumers with effect from September 27, 2018. On September 16, 2018, the Economic Coordination Committee (ECC) of the Cabinet allowed raise in the gas prices for domestic consumers in the range of 10 percent for the lowest slab consumers to 143 percent for the highest slab domestic consumers.
The ECC increased gas slabs for domestic sector from three to seven with an aim to pass on minimum burden on the poor of the country. On Thursday, the Ogra formally notified the new prices of gas for domestic, commercial and other categories consumers. For up to 50 mmfcd slab, the government increased the gas prices by 10 percent to Rs 121 per mmbtu. According to government estimates, this will increase the monthly bill of such category consumers from Rs 252 to Rs 275.
For the second category of up to 100 mmcfd consumers, there is 15 percent increase that will push their monthly bill up to Rs 71. About 2.63 million households fall in this category. For the third category up to 200 mmcfd consumers, the government has increased the gas prices by 20 percent. This category of consumers' monthly bill will shoot up from Rs 1,851 to minimum Rs 2,216.
The newly created fourth slab of up to 300mmcfd consumers will face an increase of their prices by 25 percent. Their monthly bill will go up from Rs 2,764 to Rs 3,449. For the fifth category of up to 400 mmcfd consumers, the government has increased the gas prices by 30 percent. Their monthly bill will increase from the minimum Rs 9,990 to Rs 12,980. For the sixth slab comprising consumers using 500 mmcfd gas, the government has increased the gas prices by 143 percent. Their monthly bill will jump from Rs 12,482 to at least Rs 30,339 per month.
For the last category of consumers using more than 500 mmcfd, the government has increased the prices by 143 percent. The monthly bill of this class will increase from Rs 14,973 to minimum Rs 36,402. The minimum charges are also increased from Rs 148.50 to Rs 163.35 per month.
The government has also increased the gas prices for commercial consumers by 40 percent including for special commercial connection like oven (Tandoors). It has increased the gas prices for old fertilizer plants by 50 percent and for new units up to 40 percent.
For general industries and captive power plants, the government has increased the gas prices by 40 percent - an increase from Rs 600 per mmbtu to Rs 780. However, registered manufacturers or exporters of textile, carpets, leather, sports and surgical goods will be exempted from the increase.
The government increased the gas prices for the power sector by 57 percent. The gas sale price for the cement sector also increased from Rs 750 to Rs 975 per mmbtu. The CNG sector gas prices were also increased by Rs 980 per mmbtu.