Domestic gas tariff raised by 15.87pc
ISLAMABAD, Dec 21: The Oil and Gas Regulatory Authority (Ogra) has determined an average increase of about 15.87 per cent in domestic gas price and 13.06 per cent for the remaining categories of consumers, including commercial, industrial, CNG, cement and power but excluding fertilizer. The tariff increase is set to go into effect from January 1, 2006, throughout the country.
Ogra has revised these prices through two separate interim orders relating to the tariff schedules of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
For the first time in Pakistan’s history, there will be a difference in prices of SNGPL and SSGCL in case of commercial, CNG, cement and power sector consumers. The SNGPL consumers will pay higher rates than those paid by SSGCL consumers, according to Ogra’s two interim orders provided to Dawn.
The domestic gas rates, though higher than before, will continue to remain uniform.
Ogra has cited sharp increase in average crude oil and High Sulphur Fuel Oil (HSFO) prices in the international market during June-November 2005 and resultant increase in domestic gas producer prices as reasons for consumer price increase.
It said the weighted average cost of gas (WACOG) had increased from Rs144.32 per MMBTU to Rs156.51 per unit.
DOMESTIC TARIFF FOR SSGCL AND SNGPL: The domestic rates for first slab of 100 cubic meters of both the utilities have been jacked up by Rs11.24 per unit (15.2 per cent) to Rs85.19 per unit from the existing rate of Rs73.95 per unit.
The rate under the second slab (100-200 cubic meters per month) has been increased by Rs19.41 per unit to Rs147.03 per MMBTU. The price for this slab is currently pegged at Rs127.62 per unit. The tariff for the third slab (200-300 cubic meters per month) has been increased by Rs31.04 per unit to Rs235.21 per unit, from Rs204.17 per unit at present.
Similarly, all consumers using more than 300 cubic meters per month will be paying Rs40.38 per unit (15.2 per cent) higher than the existing rate of Rs265.59 per unit. The new rates for this category have been fixed at Rs305.97 per unit.
SSGCL PRICES: Ogra’s order said “the authority...allows an increase of Rs23.15 per MMBTU (million million British thermal units) in the average prescribed price of the petitioner (SSGCL) on provisional basis w.e.f January 1, 2006, to enable it to recover the estimated shortfall in its ERR (estimated revenue requirement) for FY 2005-06 on account of increase in the cost of gas”.
“This increase has been allowed at 15.87 per cent in case of domestic tariff...and 13.06 per cent in remaining categories of consumers except feedstock supply to fertilizer consumers,” the order reads.
The SSGCL rates for commercial consumers and ice factories have been allowed to increase by 7.3 per cent (Rs17.08/MMBTU) to Rs251.75 per MMBTU (unit) from the current rate of Rs234.67 per unit.
Similarly, the SSGCL rates for industrial consumers, captive power and thermal power plants, CNG stations and Pakistan Steel have been nudged up by 9.3 per cent or Rs19.40 per unit to Rs227.96 per unit, from Rs208.56 per unit at present.
Ogra has reduced gas rates for cement industry by 5.1 per cent or Rs12.32 per unit to Rs227.96 in order to bring this sector on a par with other industrial units.
SNGPL TARIFF: The SNGPL rates for commercial consumers and ice factories have been raised by 15.2 per cent (Rs35.68 per unit) to Rs270.35 per unit from the existing rates of Rs234.67 per unit.
The gas rates for industrial consumers, captive power plants, Wapda plants and gas used as fuel for steam and electricity and for housing colonies have been increased by Rs31.71 per unit (15.2 per cent) to Rs240.27 per MMBTU, from the existing rate of Rs208.56 per unit.
The tariff for cement factories has been increased by 15.2 per cent (unlike reduction in SSGCL’s case) to Rs276.82 per unit, up by Rs36.54 per unit.
Interestingly, Ogra would hold public hearing of two separate petitions of SNGPL and SSGCL on December 22 and December 29, respectively, to come up with detailed determinations.
However, almost all the assumptions used by the two gas utilities for tariff increase have been accepted by Ogra in its interim order and would be subject to re-adjustment in case of any change in the final judgment.