Ogra recommends 213.7 percent hike in gas prices

The Oil and Gas Regulatory Authority (Ogra) has recommended the government to increase prices of gas up to 213.7 percent for domestic consumers to meet the revenue requirement with effect from January 2020.

The Ogra has forwarded its decision to the federal government and sought advice to pass on increase in prescribed prices of gas to the consumers. The federal government notified revision in gas prices for different consumers that involve cross subsidy.

Both gas companies Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) submitted estimated revenue requirements for financial year 2019-20 seeking increase in prescribed prices of gas.

The Ogra has made the highest increase for domestic gas consumers falling in first slab of SSGCL by 213.7 per cent and 192 percent for SNGPL consumers due to providing liquefied natural gas (LNG) in winter season.

The SNGPL would collect revenue of around Rs 244 billion and Rs 275 billion would be collected by SSGCL. The SNGPL provides gas to the consumers of Punjab and KPK whereas SSGC supplies gas to the consumers of Sindh and Balochistan.

The regulator has decided to increase gas price for domestic consumers of SNGPL by 192 percent, fertilizer sector, 135 percent, and 31 percent for consumers falling under the category of Roti Tandoor, commercial, industrial, zero-rated export industry, captive power plants, compressed natural gas (CNG), cement and power plants.

The tariff for the first slab of domestic gas consumers of SNGPL has been hiked from Rs 121 per million British thermal unit (MMBTU) to Rs 353.26/MMBTU; second slab tariff Rs 300/MMBTU to Rs 353/MMBTU; and third slab Rs 553 to Rs 530/MMBTU.

However, the tariff of fourth slab has been reduced to Rs 706/MMBTU from Rs 738.The tariff for fifth slab has been increased to Rs 1,273/MMBTU from Rs 1,107 and for sixth slab to Rs1,679/MMBTU from Rs 1,460 per mmbtu.

The tariff for the first slab of domestic gas consumers of SSGC has been hiked from Rs 121 per MMBTU to Rs 379.62 per MMBTU, second slab tariff, Rs 300/MMBTU to Rs ,379.62/MMBTU; and third slab Rs 553 to Rs 569.43/MMBTU. The tariff of fourth slab has increased to Rs759.24/MMBTU from Rs 738/MMBTU.

The tariff for fifth slab has been reduced to Rs 1,091.87/MMBTU from Rs 1,107 and sixth slab to Rs 1440.05/MMBTU from Rs 1460 per mmbtu. The tariff for Roti Tandoor category of gas consumers has been hiked from Rs780/MMBTU to Rs 1,026/MMBTU. The gas tariff for commercial gas consumer has been hiked from Rs 1,283/MMBTU to Rs 1,687/MMBTU. The tariff for general industry has been increased from Rs 1,021/MMBTU to Rs 1,343/MMBTU.