The decision regarding 13 percent increase in gas tariff as requested by the Sui Northern Gas Pipe Lines Limited (SNGPL) will be taken within a week, Chairman Oil and Gas Regulatory Authority (Ogra) Tauqir Sadiq, said. Talking to reporters after public hearing on SNGPL's petition here on Thursday, Tauqir said that SNGPL has requested to fix the price of gas at Rs 42 mmbtu.
He stated there was no ban on issuing gas connections to industry, however, Ogra has directed the SNGPL to provide fresh gas connections only on the availability of gas. He said that gas connections were given to 250,000 customers adding that SNGPL prayed the Ogra to allow increase in gas tariff to help overcome the deficit of Rs 1.3063 billion in the assessed requirements for the year 2010-2011. He said that oil companies had not been given the powers to fix the oil prices on their own.
Members of consumer organisations, representatives of industry and representatives of employees union of SNGPL were present on the occasion. Managing Director SNGPL, Rasheed Lone said that increase in the prices of gas would be implemented from January 1, 2011 adding that there would be an increase of 2.50 percent for the domestic consumers. He said that gas load management plan would be announced by SNGPL on November 15, 2010 according to which supply of gas to 3500 industries would be stopped.