ISLAMABAD, Dec 14: In a major policy shift, the government has decided to fix gas tariff for all consumer groups on the basis of heating value instead of existing volume-based gas pricing.

Authentic sources in the ministry of law and justice told Dawn that the new heating value-based gas price notification was currently being vetted.

This would be publicised by the ministry of petroleum and natural resources through a gazette notification most probably tomorrow and would come into force with effect from January 1, 2002.

The change in pricing mechanism has been necessitated on strong demand from the industrial sector particularly textile industry and commerce minister Razak Dawood built up such a pressure that whole mechanism was changed. The same system is currently applicable internationally which means that gas supply would be measured in mmbtu (million British thermal unit) instead of mmcfd (million cubic feet per day).

It would, however, be applicable to all consumer groups including domestic, commercial, industrial, cement, fertilizer, power and compressed natural gas (CNG) sectors falling under both the transmission systems of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).

The new mechanism, petroleum ministry officials claim, would have no additional financial impact on consumers rather industrial consumers would benefit as their billing would start when the gas quality is of a specific heating value of 950-1000 btu.

According to the notification now under vetting at law division, a minimum charge of Rs90.18 per month would be payable by domestic consumers including residences, religious places, government and semi-government consumers, armed forces, educational institutions and charitable institutions.

The first slab of up to 6.74 mmbtu per month would charged at Rs93 per mmbtu while second slab of up to 10 mmbtu per month would be charged at Rs139 per mmbtu.

The fourth slab of up to 13.5 mmbtu per month would be payable at Rs168 per mmbtu while the fourth slab of over 13.5 mmbtu per month would be charged at Rs181.54.

All the commercial consumers would be charged at all of-take maximum flat rate of Rs186.98 per mmbtu and a maximum monthly charge of Rs1,891 per month.

A flat maximum flat rate of Rs166.18 per mmbtu would be applicable to industrial consumers but at the minimum charge of Rs5,604 per month. The same rate would be applied to CNG and power station.

Cement industry would be charged at a maximum rate of Rs194.7 per mmbtu and minimum monthly charge of Rs6,565.

The industrial sector had been complaining that due to volume based gas pricing they had to pay higher rates even if the gas did not contain heating value required by their system.

In this way, the gas companies would have to maintain a standard heating value of 950-1000 btu and the tariff would drop automatically in case of low btu.