15 October 2004	Friday	29 Shaban 1425

KARACHI, Oct 14: Irrespective of the positive economic indicators, consumers have experienced phenomenal jump in oil products as against partial increase in electricity and gas rates in the last five years.

When Pervaiz Musharraf came into power, consumers were paying Rs24.40 for petrol, Rs10.66 for diesel, Rs10.55 for kerosene and Rs28.5 per litre for high octane blending component (HOBC) on October 12, 1999.

As on October 12, 2004, the rate of petrol has surged to Rs36.92, up by 51.31 per cent, while 129 per cent rise has been witnessed in diesel rates to Rs24.37 per litre. A 128 per cent increase was seen in kerosene prices to Rs24 while HOBC price escalated by 43.40 per cent to Rs40.87 per litre.

In gas prices, a consumer who was paying bill of Rs55.23mmbtu per month on consumption of up to 3.55 million cubic feet per month, is now getting the bill of Rs66.56mmbtu.

Similarly, the bill of Rs65.58mmbtu five years back for consuming 3.55-7.10mcf per month, is now charged at Rs100.28. Consumers, who were getting a bill of Rs89.66mmbtu per month five years back on consuming 7.10- 10.64mcf per month, are now getting the bill of Rs160.43.

On consuming 10.64-14.2mcf per month, the end users are getting a bill of Rs209mmbtu per month as compared to Rs107.58mmbtu on October 12, 1999. On commercial side, the gas rates have escalated by 36.57 per cent to Rs184.39 from Rs135.02 on October 12, 1999. An increase of 36.57 per cent has been noticed in the rates for general industry to Rs163.88 from Rs120 in the last five years.

In telephone charges, the rates have been plunging with the passage of time thanks to the entry of various companies, thus creating stiffening competition among the companies to grab the market share.

Up to consumption of 50 units, the power rates have not changed, maintaining at Rs1.34/kwh. For using 100 units, the rate has surged to Rs2.74 from Rs1.64/kwh while for next 200 units, the power rate has surged by 37 per cent to Rs3.45 from Rs2.52/kwh.

For next 70 units, a 15 per cent increase was seen in the last five years to Rs5.44 from Rs4.71/kwh. For next 3,000 units - the rate has gone up by 4.54 per cent to Rs6.35 from Rs6.07/kwh. For above 4,000 units, the power rate has declined to Rs6.35 from Rs6.58/kwh.

Research Head of Invest Capital and Securities, Mohammad Sohail, who compiled the statistics, said that in energy segment, prices of oil products have increased sharply in the last five years. Especially the prices of diesel and kerosene had risen at a faster pace because of the quantum of taxes on these products.

But the upward adjustment in local oil prices is less than the crude oil price increase of around 140 per cent in dollar terms in global markets. He said that the prices of gas also went up moderately. Small household and general industry was not hit hard as government emphasis to reduce subsidising rates of household gas consumers of middle and upper category.

The overall prices of electricity did not witness a sharp rise in the last five years thanks to improving conditions of state utilities and shifting of focus on hydel and gas related power generation in this regard, Sohail said.