ISLAMABAD, Nov 20: The Oil and Gas Regulatory Authority (Ogra) on Tuesday allowed 6.56 per cent increase in the prescribed prices of natural gas for all consumer categories throughout the country, to be effective from January 1, 2008.

As such, the rates for domestic, commercial, industrial, CNG stations, fuel for fertiliser (not feedstock), cement and power generation would go up for both companies, except for CNG stations and cement factories of SNGPL, which would come down by less than 70 paisa per unit.

The Ogra has made the decision through an interim order on the request of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), seeking an immediate increase in tariff at the rate of Rs14.20 and Rs10 per million British thermal unit (MMBTU), respectively.

Both the companies had sought across the board increase in tariff for all consumers, primarily on the grounds that crude oil prices and high sulphur fuel oil (HSFO) prices have “constantly been increasing” during June-November 2007 that would result in rise in well-head prices of gas producers for the period between January-June 30, 2008. Pakistan gas rates are linked with international oil prices.

The increase in average cost of gas, they claimed, would cause shortfall in SNGPL’s revenue requirement to the tune of Rs4 billion and Rs2.2 billion in SSGCL’s in annual accounts for 2007-08 and hence an increase in rates is necessary.

The consumer-end gas tariffs are revised after six months under the existing laws on January 1 and July 1 every year.

The SSGCL had sought an average increase of Rs9.98 per unit (MMBTU) for all consumers but the Ogra decided to increase domestic tariff for SSGCL consumers by 6.56 per cent (Rs11.40 per MMBTU) to maintain a uniform rate for both the gas utilities and consumers across the country. However, the industrial, commercial, cement industries and power sector consumers under the SSGCL system would be charged slightly lower than their counterparts under SNGPL’s system, although their prescribed prices would go up by an average 5.3 per cent.

The Ogra has sent two separate interim orders in case of SSGCL and SNGPL to the federal government on Tuesday. Under the Ogra law, “the government is required to advise the Ogra, within 40 days for revision in prescribed prices, the minimum charges and the sale price for each category of retail consumers, for notification in the gazette of Pakistan”.

In case the government fails to respond in 40 days, the Ogra shall, at its own, notify the prescribed price and sale rate of each consumer category.

The rates for domestic consumers of both the companies have been kept uniform. According to the revised tariff sheets, the gas prices would increase by Rs5.14 per unit (6.56 per cent) to Rs78.38 per MMBTU to Rs83.52 per unit for first domestic slab of 50 cubic meters. The second (50-100 cubic meters) slab rates would go up by Rs5.40 per unit (6.58 per cent), from Rs82.07 to Rs87.46 per unit. Third slab (100-200 cubic meters) rates would rise by Rs9.80 per unit, from Rs149.40 to Rs159.20 per unit while fourth slab (200-300 cubic meters) rates would go up by Rs15.67 per unit to Rs254.69 from Rs239.01. Likewise, the fifth slab of about 300 cubic meters would increase by Rs20.40 per MMBTU to Rs331.32 from existing rate of Rs310.92 per MMBTU.

The revised gas rates for other consumer categories, including commercial, general industry, power, cement and fertilizer would remain different for both companies.

SSGCL: The commercial gas rates would increase by Rs13.99 per MMBTU to Rs282.22 instead of Rs268.23. The gas rates for general industry, captive power, Pakistan Steel, power generation and fuel for fertiliser would increase by Rs12.60 per unit to Rs250.98 per MMBTU instead of existing Rs238.38.