POL prices remain unchanged for July

OGRA announces increase of up to 168.36% in gas prices


Our Correspondent June 30, 2019
Ogra had recommended a reduction of Rs0.77 per litre in petrol price and a hike of Rs2.30 per litre in HSD price. PHOTO: FILE

ISLAMABAD: In a bid to provide relief to the masses, the government has decided not to increase the prices of petroleum products for the month of July.

“The existing price of June, 2019 will remain unchanged for the next month,” said a statement issued by the Ministry of Finance late on Sunday.

The Oil and Gas Regulatory Authority (Ogra) had recommended to the government a reduction of Rs0.77 per litre in the petrol price and a hike of Rs2.30 per litre in the HSD price for July, 2019.

The regulator had also proposed an increase of Rs0.26 per litre in the price of light diesel oil (LDO) and a reduction of Rs2.94 per litre in the price of kerosene oil.

OGRA recommends cut in petrol price, hike in diesel rate

The regulator, on the other hand, has issued a notification of an increase of up to 168% in gas prices for domestic, commercial and industrial sectors, effective from July 1.

As per the notification, the authority has determined Rs121 per Million British Thermal Unit (MMBTU) for domestic consumers using up to 0.5hm3 (in cubic hectometers) gas per month, Rs300 per MMBTU for users of up to 1hm3, Rs553 per MMBTU for up to 2hm3, Rs738 on consumption of up to 3hm3, Rs1,107 and Rs1,460 per MMBTU for consuming up to 4hm3 and above 4hm3 respectively.

"The billing mechanism will be revised so that the benefit of one previous/preceding slab is available to domestic consumer (residential use)," it said determining minimum charges at Rs172.58 per month.

For government and semi-government offices, hospitals, clinics, maternity homes, government guest houses, armed forces messes, langars (free food distributions), universities, colleges, schools and private educational institutions, orphanages, and other charitable institutions along with hostels and residential colonies to whom gas is supplied through bulk meters including Captive Power, Ogra has fixed all off-takes at flat rate of Rs780 per MMBTU, with minimum charges of Rs4,680 per month.

In commercial sector, the authority has determined all off-takes at flat rate of Rs1,283 per MMBTU for all establishments registered as commercial units with local authorities or dealing in consumer items for director commercial sale like cafes, bakeries, milk-shops, tea stalls, canteens, barber shops, laundries, hotels including hotel industry, malls places of entertainment like cinema, clubs, theaters, private offices  and corporate firms among others.

Minimum charges for these are Rs5,880 per month.

In category of Special Commercial (roti tandoors), the gas price has been determined for Rs121 per MMBTU for using up to 0.5 hm3 gas per month, Rs300 per MMBTU for using to 1hm3, Rs553 per MMBTU for using up to 2hm3, Rs738 per MMBTU for using up to 3hm3 and Rs1,283 per MMBTU for using above 3hm3.

Minimum charges for this category are Rs172.58 per month.

Minister announces up to 168% rise in gas prices

For Ice Factories, all off-takes have been fixed at flat rate of Rs1,283 per MMBTU with minimum charges of Rs5,880 per month.

In general industrial sector, all off-takes have been determined at flat rate of Rs1,021 per MMBTU for all consumers engaged in the processing of industrial raw material into value added finished products irrespective of the volume of gas consumed but excluding such industries for which a separate rate has been prescribed. Minimum charges for this sector are Rs 26,301 per month.

For registered manufacturers or exporters of five zero-rated sectors and their captive power namely textile (including jute), carpets, leather, sports and surgical tools, the authority has determined all off-takes at flat rate of Rs786 per MMBTU, with minimum charges of Rs20,232 per month.

In Compressed Natural Gas (CNG), all off-takes have been fixed at flat rate of Rs1,283 per MMBTU with minimum monthly charges of Rs33,045.

For Cement Factories, a flat rate of Rs1,277 per MMBTU would be charged for all off-takes. Its minimum charges will be Rs32,877 per month.

For fertilizer companies, almost all off-takes have been fixed at flat rate of Rs300 per MMBTU for gas used as feed-stock and Rs1,021 per MMBTU for gas used as fuel for generation of electricity, steam and for usage of housing colonies.

However, Engro Fertilizer Company Limited will pay $0.70 per MMBTU for all off-takes at flat rate for gas used as feed stock, and Rs1,021 per MMBTU for gas used as fuel for generation of electricity, steam and for usage of housing colonies.

In power sector, all off-takes have been determined at flat rate of Rs824 per MMBTU for WAPDA, K-Electric's power stations and other electricity utility companies, with minimum charges of Rs21,209 per month.

For WAPDA's Gas Turbine Power Station, Nishatabad, Faisalabad, all off-takes would be at flat rate of Rs824 per MMBTU, while its fixed charges per month are Rs975.

For Liberty Power Limited's Gas Turbine Power Plant (Phase-I) at Daharki, all off-takes have been determined at Rs1,283.47 per MMBTU with minimum charges of Rs43,278.61 per month.

For Independent Power Producers, all off-takes would be available at flat rate of Rs824 per MMBTU with minimum charges of Rs21,209 per month.

For Captive Power Plants, all off-takes have been fixed at flat rate of Rs1,021 per MMBTU with minimum charges of Rs26,301.60 per month.

With additional input from APP

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