The Sui Southern Gas Company Limited (SSGC) has sought an unprecedented high upward revision in gas tariff, of Rs 60 per million British thermal unit (MMBTU), from July 1, 2010, Business Recorder has learnt. The Oil and Gas Regulatory Authority (Ogra) will conduct public hearing in Quetta on Tuesday before deciding whether to support the tariff sought by SSGC, to meet its revenue shortfall.
SSGC is expected to face stiff resistance from all stakeholders, including textile industry, over the proposed gas tariff hike. SSGC will also face resistance from CNG stations' association, likely to suffer massive losses if the price of CNG is increased. "Any increase in CNG prices may result in minimising the price differential with petrol that would result in reduction of CNG consumption," sources said.
Ogra had earlier allowed about Rs 64.02 per MMBTU increase in the average rate of SNGPL, up by about 18 percent. Likewise, the average rate for SSGC had been allowed to increase by Rs 38.06 per MMBTU, up by about 9 percent. The government had notified 18 percent average rate for all consumers, of both SSGC and SNGPL, from January 1, 2010.
The federal government revised the slab structure for gas consumers from July 10, 2008, which had caused a rise in gas bills by 110 percent by clubbing maximum consumption to the lowest applicable slab.
Official record, recently placed before the National Assembly, showed that gas prices increased by 127.43 percent from January 1, 2008 to January 1, 2009 for consumers of higher slabs. Due to revision in slab structure, there was 37.8 percent increase for those consuming up to 400 units, 76.38 percent for those consuming 400-500 units, and 127.43 percent for those who consumed more than 500 units of gas. The federal government had increase the number of domestic slabs from 5 to 7 from July 1, 2008, which resulted in increase in gas prices for domestic consumers.