ISLAMABAD, July 2: The government on Sunday announced a 9.95 per cent increase in gas rates for all consumer categories, including domestic, commercial, industrial, CNG stations, cement, fertiliser, ice factories and power sector with retrospective effect from July 1.

In addition to gas consumption, minimum charges have also been increased by 9.95 per cent for industrial, commercial, cement, CNG, power and fertilizer sectors and five per cent for domestic consumers.

The increase in tariff was approved by Prime Minister Shaukat Aziz after three days of hectic consultations with secretary petroleum to comply with a World Bank demand to reduce subsidy for the first slab of domestic consumers.

The revised tariff would be applicable for both Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL). The notification was, however, issued by the Oil and Gas Regulatory Authority (Ogra) back dated June 30.

Official documents suggested that the Ogra had determined over 15 per cent increase in tariff for industrial, commercial and CNG and power sector but kept domestic tariff much lower.

The government, however, decided to increase domestic as well as all other categories at the rate of 9.95 per cent to reduce burden on industrial and commercial tariffs and reduce subsidy on domestic sector.

The increase in gas tariff would yield a little over Rs20 billion revenue to the two gas utilities. The Sui Northern and Sui Southern would get Rs9.4 billion and about Rs10.7 billion respectively.

DOMESTIC CONSUMERS: The first slab (100 unit) domestic consumers has now been divided into two, thus increasing the number of slabs to five from the existing four.

The first 50 cubic meters per month (units) would now be charged at Rs85.03 per MMBTU (million British thermal unit), showing an increase of five per cent.

The increase for all other slabs has been kept at 9.95 per cent. Rates for second slab of over 50 to 100 cubic meters per month have been fixed at Rs89.03 per MMBTU from Rs80.98, followed by Rs162.07 for the third slab of 100-200 cubic meters, which was earlier charged at Rs147.41 per MMBTU.

The fourth domestic slab of 200-300 cubic meters has now been fixed at Rs259.29 per MMBTU instead of Rs235.84, while the rate for fifth slab of all over 300 cubic meters per month has been fixed at Rs337.30 per MMBTU instead of Rs306.79.

Minimum charges for all domestic consumers have been fixed at Rs114.69 per month against Rs109.22, showing an increase of five per cent.

COMMERCIAL CONSUMERS: New rate for commercial consumers have been fixed at Rs298.03 per MMBTU against Rs271.07 per MMBTU. These consumers have been defined as cafes, bakeries, milk-shops, tea stalls, canteens, barber shops, laundries, ‘tandours’, cinemas, clubs, theatres, clinics, maternity homes and private offices.

Similarly, the tariff for ice factories has now been fixed at Rs298.03 per MMBTU instead of Rs271.07 per MMBTU. Minimum charges for commercial consumers and ice factories have now been fixed at Rs1,406.91 instead of Rs1,279.65 per month.

INDUSTRIAL CONSUMERS: The sale price for all industrial consumers, including captive power plants and CNG stations, has been fixed at Rs264.87 per MMBTU against Rs240.91 per unit, showing an increase of Rs14 per month.

Minimum charges for the three categories has now been fixed at Rs8,931.21 per month instead of Rs8,123.37 per month.

However, the tariff for gas consumption by Liberty Power Project in Sindh has been increased by 36 per cent to Rs413.46 per MMBTU against the existing rates of Rs303.25.

CEMENT INDUSTRY: New rates for cement industry have been fixed at Rs305.15 per MMBTU against the existing rate of Rs277.5 per unit.

FERTILISER INDUSTRY: Gas tariff for the fertilizer sector, including Pak-Arab, Dawood Hercules, Pak-American, Pak-China and FFC Jordan, has been increased by 9.95 per cent to Rs264.87 per MMBTU instead of Rs240.91.