ISLAMABAD, May 21: The Oil and Gas Regulatory Authority (Ogra) has allowed gas utilities to increase domestic users’ tariff by 7.2 per cent and up to 16 per cent for other consumers with effect from July 1.
Ogra revised the prices through two separate provisional orders on tariff schedules of the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
The increase in gas tariff would yield an additional revenue of slightly over Rs20 billion to the two gas utilities. The authority’s figures showed that SNGPL and SSGCL would get Rs9.4 billion and Rs10.7 billion, respectively.
The orders issued on Saturday suggest that the gas rates for all consumers of SNGPL had been increased by 7.19 per cent. On average, SNGPL’s rates had been increased by 15.16 per MMBTU (million British thermal unit). The increase was in addition to over 15 per cent rise that occurred on Jan 1.
The gas tariff for domestic consumers of SSGCL had been increased by 7.19 per cent to maintain uniformity with SNGPL’s domestic consumers while the average increase in the gas rates of all other consumers had been increased by an average 15.91 per cent. On average, the SSGCL rates were increased by Rs29.80 per MMBTU.
Gas rates for other consumers, including cement, fertiliser, industrial and power sectors, would be higher in the SSGCL’s service area, including Karachi, than in the SNGPL’s area.
Under the Ogra ordinance, the federal government is required to issue a formal notification for the tariff increase within 40 days (before June 30) with minor adjustments but still remaining within the revenue figures determined by the Ogra.
The Ogra cited a sharp increase in the average prices of crude oil and fuel oil (HSFO) in the international market during the June-November 2005 period as a reason for the increase in domestic gas prices. It said the weighted average cost of gas increased from Rs167.5 per MMBTU to Rs192.5 per unit.
DOMESTIC TARIFF FOR SSGCL AND SNGPL: The domestic rates for first slab of 100 cubic meters for both utilities have been jacked up by Rs5.82 per unit (7.2 per cent) to Rs86.8 per unit instead of existing Rs80.98 per unit.
The second slab (100-200 cubic meters per month) rates have been increased by Rs10.59 per unit to Rs158 per MMBTU from Rs147.41 per unit. The third slab (200-300 cubic meters per month) tariff has been increased by Rs16.95 per unit to Rs252.79 per unit from Rs235.84 per unit.
Similarly, all consumers using more than 300 cubic meters per month would have to pay Rs22.05 per unit (7.2 per cent) above the existing rates of Rs306.79 per unit. New rates for this category have been fixed at Rs328.84 per unit.
SSGCL PRICES: Ogra’s order said: “The authority...allows an increase of Rs29.80 per MMBTU (million British thermal units) in the average prescribed price of the petitioner (SSGCL) on provisional basis with effect from July 1 to enable it to recover the estimated shortfall in its estimated revenue requirement on account of increase in the cost of gas.”
The average increase domestic rates of SSGCL consumers is 7.2 per cent but its other consumers, except feed stock, would face an average price increase of 15.91 per cent.
The SSGCL’s rates for hostels and residential colonies has been raised by 7.2 per cent to Rs158 per unit. The SSGCL rates for commercial consumers and ice factories have been allowed to increased by 15.91 per cent (Rs10.59/MMBTU) to Rs292.53 per MMBTU (unit) from current rates of Rs252.37 per unit.
Similarly, the SSGCL rates for industrial consumers, captive power and thermal power plants, CNG station and Pakistan Steel have been increased by 15.9 per cent or Rs36.38 per unit to Rs264.9 per unit from existing rates of Rs228.52 per unit.
SNGPL TARIFF: The SNGPL rates for commercial consumers have been raised by 7.2 per cent (Rs19.55 per unit) to Rs290.55 per unit from existing rates of Rs271 per unit.
The gas rates for industrial consumers, captive power plants, Wapda plants have been increased by Rs17.31 per unit (7.2 per cent) to Rs258.22 per MMBTU against existing rates of Rs240.91 per unit.
The gas rates for cement factories have also been increased by 7.2 per cent to Rs297.5 per unit. The gas rates for fertiliser consumers has also been increased.
The rates for Pak-Arab Fertiliser feedstock has been increased by Rs12.49 per unit to Rs95.73 per unit and Rs17.3 per unit for fuel to Rs258.22 per unit.
Similarly, rates for Pak-China Fertiliser has been increased by 14 per cent for feedstock and 7.2 per cent for fuel. The feedstock rates for Pak-American Fertiliser would remain flat at Rs36.77 but its fuel gas rates would go up by 7.2 per cent.
