New sale price of gas notified

The Oil and Gas Regularity Authority (OGRA) has notified on Sunday new sale price of gas up to 198 percent with effect from July 1, 2019. The government increased the tariff above the recommended gas tariff of OGRA for current financial year as government was anticipating that the OGRA's tariff can generate a total revenue of Rs 397 billion leaving behind a revenue shortfall of Rs 144 billion for financial year 2019-20. Therefore, the government revised the gas sale prices to generate additional revenue of Rs 112 billion and rest of Rs 32 billion shortfall will be met through GIDC.
As per OGRA determined Rs 541 billion for both gas companies- Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) revenue requirement for financial year 2019-20. According to notification of OGRA, In domestic sector, the first slab consumers (up to 0.5 Hm3) will face no increase in gas tariff. However, second slab consumers consuming gas up to 1Hm3 will face the increase in bill by 42 percent and their new tariff will be 300 per mmbtu instead of Rs 127 per mmbtu. The third slab consumers consuming up to 2 Hm3 will face the increase in tariff by 75 percent and will pay Rs 553 per mmbtu instead of Rs 254 per mmbtu. The fourth slab category consumers of up to 3Hm3 users will face an increase in cost of gas by 100 percent and will pay Rs 738 per mmbtu instead of Rs 275. The fifth slab domestic consumers using gas up to 4 Hm3 will be given the rise in tariff by 150 percent to Rs 1107 per mmbtu from Rs 780 per mmbtu. However, the sixth slab category using above 4 Hm3 gas per month will have to pay Rs 1460 per mmbtu which is 198 percent of the delivered gas. The monthly bill for the first slab of gas consumers has been kept unchanged at Rs 285, the bill for second-slab consumers will go up from Rs 572 to Rs 933; for third-slab consumers from Rs 2,305 to Rs 3,712, for fourth slab from Rs 3,589 to Rs 7,995 and for fifth slab from Rs 13,508 to Rs 14,373.
The export industry of textile, leather, carpet, surgical and sports will be given the gas at the rate of $6.5 per mmbtu. The tariff for captive gas use in this category will be charged at Rs 1021 per mmbtu. The monthly bill for special commercial consumers (roti tandoor) with consumption up to 3Hm3 will be in accordance with the domestic slab.
For fertilizer sector the tariff has been increased by 31 percent of the cost of gas to Rs 1,021 per mmbtu. For power producers, the new gas price stands at 824 percent from existing prices of Rs 629 per mmbtu. For cement sector, the gas tariff is increased to Rs 1,277 from Rs 975 per mmbtu and for captive and general industry the new gas tariff stands at Rs 1,021 per mmbtu. For CNG sector the new cost now stands at Rs 1,283 per mmbtu and for commercial consumers the gas tariff stands at Rs 1,283 per mmbtu.
It has been second time that Pakistan Tahreek-e-Insaaf Government increased the gas prices for consumers. First time in September, 2018, the gas prices were increased by 143 percent.