- In November 2022 gas tariff increase on requests of SNGPL, SSGC.
- Poor consumers have been hit the hardest as their gas prices have tripled.
- Tariff for SSGC customers increased by 67.75%.
ISLAMABAD: Between bites Inflation and shrinking purchasing power, Oil and Gas Regulatory Authority (OGRA) Gas bomb on the public as it hiked tariffs by up to 74 percent for customers of the two Sui gas companies, effective from July 2022.
The regulator, in a notification issued on Wednesday, increased export-based tariffs of Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company (SSGC) for domestic consumers, commercial sector, ovens, captive power plants and general industries. Sector
Interestingly, the regulator has done away with the earlier applicable slabs of gas consumption and their associated rates and fixed the price at 952.17 per million British thermal units (mmBtu) for SNGPL consumers. Similarly, for SSGC, fixed prices are fixed at Rs.1161.91/mmBtu.
Taking a quick look at the decision, those in the lower slabs who consume less and are almost poor consumers have been hit the hardest as their gas prices have been tripled, while prices for the higher slabs have literally come down. has been done
The regulator issued its decision in November 2022 after a public hearing on the pleas of SNGPL and SSGC, where both companies had sought a substantial hike in fixed gas prices for the current FY23 to help meet revenue requirements. .
SNGPL, which operates the gas network in Punjab and Khyber Pakhtunkhwa, demanded an increase of Rs 1,294.02 per mmbtu and SSGC, which operates the gas network in Sindh and Balochistan, at Rs 667.44 per mmbtu. Is.
According to OGRA’s latest decision on their pleas, fixed gas prices for SNGPL have been increased by 74.42%. SSGCIt has been increased by 67.75%.
In concrete terms, the average price for SNGPL has increased by Rs 406 per mmbtu to Rs 952.17 per mmbtu. Gas price for SSGC has also been increased by Rs 469 per mmbtu to Rs 1,161.95 per mmbtu.
The regulator has sent its decision to the federal government.
Now the government will decide on it within 40 days of this notification. It will come into force automatically if the government does not notify it.
For domestic consumers, fixed prices for the lowest slab, which was earlier Rs 121 per mmbtu, has now been increased to Rs 952.17 per mmbtu, representing an increase of 687%. Is. For the next slab, it has been increased from Rs 300 per mmbtu to Rs 952.17 per mmbtu.
Interestingly, the prices for the highest two slabs have been reduced after fixing Rs 952.17.
Earlier the second slab was paying Rs 1,107 per mmbtu and the last slab was paying Rs 1,460 per mmbtu. Now if we compare these prices with the new prices, there is a significant reduction in gas prices for rich consumers.
Similarly, five slabs for commercial consumers (ovens) have been abolished, and the rate has been fixed at Rs 952.17 per mmbtu. Earlier, Tandoor gas tariff was Rs 110 per mmbtu for the lowest slab and Rs 700 per mmbtu for the highest slab.
For the export sector (General Industries), the existing price has been increased from Rs.819 to Rs.952.17 per mmbtu.
Gas price for captive power plants has been increased from Rs 852 to Rs 952.17. Interestingly, prices of CNG, cement and fertilizer sectors have been reduced.
Slabs have been removed for SSGC customers and prices have been fixed at Rs 1161.91 per mmbtu.