ISLAMABAD, Oct 30: Two state-owned gas utilities have requested the Oil and Gas Regulatory Authority (Ogra) to allow raise in their tariffs by 14 to 124 per cent. If approved, the new tariffs will be effective from January to June.
Copies of the petitions submitted by the Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) to Ogra, and obtained by DawnNews, reveal that the utilities sought increase in tariffs because of devaluation of the rupee and on account of hike in well-head price.
While seeking a 124pc increase in the prescribed gas price, the SNGPL has sought a tariff hike of Rs131.98 per million British thermal unit (mmbtu) for all categories of consumers.
For the first slab of domestic consumers, the utility has requested that the tariff be raised from Rs106.14 per mmbtu to Rs238.12 per mmbtu. For the second slab it has proposed that the rate be raised from Rs212.28 per mmbtu to Rs344.26 per mmbtu.
Similarly, the SNGPL has requested that for commercial consumers the rate be raised from Rs530.69 per mmbtu to Rs662.67 per mmbtu. For special commercial consumers, it has proposed that the price be increased from Rs531.39 per mmbtu to Rs663.37 per mmbtu.
The utility has suggested that the rate for ice factories and general industrial units be increased from Rs438.14 per mmbtu to Rs570.12 per mmbtu.
The SNGPL has proposed that rate for gas to be supplied to the CNG stations be raised from Rs577.11 per mmbtu to Rs709.09 per mmbtu, for cement factories from Rs658.6 per mmbtu to Rs790.58 per mmbtu, and for fertiliser industry from Rs102.94 per mmbtu to Rs234.92 per mmbtu.
In its plea, meanwhile, the SSGCL has proposed that the gas tariff be kept unchanged for domestic consumers, holy places, hostels, special commercial consumers and the fertiliser industry. But under a cross-subsidy mechanism, the utility has sought a 14pc increase in the tariff, which comes to Rs61.45 per mmbtu, for the rest of consumers.
The utility has also requested the regulator to raise the tariff from Rs434.84 per mmbtu to Rs496.29 per mmbtu for ice factories, industrial consumers, CNG stations, cement factories, Pakistan Steel Mills (PSM), Karachi Electric Supply Company, and the independent power producers.
Interestingly, both the utilities have sought collection from the consumers at the rate of 7 per cent on account of stolen gas and distribution losses (unaccounted for gas).
As per their petitions, even if the regulator approves a 7pc rate of unaccounted for gas the SNGPL will suffer a loss of Rs6.78 billion and the SSGCL a loss of Rs2.36bn.
