July 01, 2008	Tuesday	Jamadi-us-Sani 26, 1429

ISLAMABAD, June 30: The government on Monday announced a hefty 31 per cent increase in gas rates for all consumer categories. The new rates will be effective from July 1.

The increase will push the retail price of CNG to over Rs52 per kg -- the highest in the region. The decision was taken a day after the government raised petrol and diesel prices by 10 per cent.

Shah Mehmood Qureshi, who is looking after the petroleum portfolio, said at a press conference that independent power projects and the fertiliser sector had been exempted from the gas tariff hike to avoid an increase in the cost of production.

According to an Ogra notification issued on Monday night, slabs for domestic users had been increased to seven from five. No increase was announced for domestic users in the first slab (up to 50 cubic metres) to third slab (over 100 and up to 200 cubic meters) which, according to Mr Qureshi, would benefit 4.9 million of 5.4 million total domestic consumers.

The gas rate for the fourth slab (over 200 and up to 300) was increased to Rs313.10 per million British Thermal Unit (MMBTU) from Rs239.01, an increase of 31 per cent. The rate for the fifth slab (over 300 and up to 400 cubic metres) has been fixed at Rs407.31, sixth slab (over 400 and up to 500) at Rs529.50 and seventh slab (over 500) at Rs688.35.

The rate for commercial consumers has been raised to Rs370.80 per MMBTU from Rs283.05. The minimum monthly charges for commercial consumers have been fixed at Rs1,750.44 from the present Rs1336.21. The commercial consumers have been defined as cafes, bakeries, milk shops, tea stalls, canteens, barber shops, laundries, tandoors, cinemas, clubs, theatres, clinics, maternity homes and private offices.

A special commercial section has been introduced for roti tandoors. Under the category, consumers using up to 300 cubic metres will be billed in accordance with the domestic mechanism whereas those consuming above 300 cubic metres will be billed at normal commercial rates.

The tariff for ice factories has been increased to Rs370.80 per MMBTU from Rs283.05. The minimum monthly charges for ice factories have been fixed at Rs1750.44 from Rs1336.21.

The sale price for all industrial consumers, including captive power plants, has been increased to Rs329.54 per MMBTU from Rs251.55, showing an increase of 31 per cent. The sale price for CNG has been increased to Rs388.32 per MMBTU from Rs291.36, a rise of 33.2 per cent.The minimum monthly charges for the first two categories of the industrial sector have been fixed at Rs11, 111.89 per MMBTU from Rs8,482.20. However, for CNG it has been raised to Rs13, 094.08 per month from Rs9,824.49.

The gas tariff for the cement industry has been increased to Rs428.89 per MMBTU from Rs335.67.