OGRA gives go-ahead to a 191pc increase in gas prices
As per the available details, an increase of 191pc has been approved for the prices of domestic gas and the fertilizer sector will see a hike of 135pc.
To meet the revenue shortfall of SNGPL (Sui Northern Gas Pipelines Limited) and SSGCL (Sui Southern Gas Company Limited) and OGRA (Oil and Gas Regulatory Authority), an increase of 17pc to 191pc have been approved. The new prices will be applicable from January 2020 till June 2020. This is the third time that the government of Pakistan Tehreek e Insaf (PTI) has approved such a dramatic surge in gas prices.
As per the available details, an increase of 191pc has been approved for the prices of domestic gas and the fertilizer sector will see a hike of 135pc. Likewise, a 31pc price increase has been approved for the consumers who fall in the category of roti tandoor, commercial, industrial, zero-rated export industry, captive power plants, compressed natural gas (CNG), cement and power plants.
A dramatic increase in revenue:
After OGRA’s decision. SNGPL will earn a revenue of about Rs244 billion and SSGCL’s earning would be Rs275 billion in the same period. After this, the price for the local gas in Balochistan, Khyber Pakhtunkhwa and Sindh will be even more expensive than imported gas.
According to the documents, tariff for the first slab of domestic gas consumers has been increased from Rs121 per Million British Thermal Unit (MMBTU) to Rs232/MMBTU; second slab tariff has been increased from Rs300/MMBTU to Rs353/MMBTU; third slab tariff has been fixed at Rs530/MMBTU; fourth set at Rs706/MMBTU; fifth at Rs1273/MMBTU; while sixth tariff slab has been fixed at Rs1679/MMBTU. (Source: Profit Today)
Likewise, the tariff for roti tandoor category of gas consumers has been drastically increased up from Rs780/MMBTU to Rs1,026/MMBTU. Similarly, that for commercial gas consumers has been increased from Rs1,283/MMBTU to Rs1,687/MMBTU.
What are your views on this? Share with us in the comments bar below.