ISLAMABAD:
After getting a bargain deal from the Oil and Gas Regulatory Authority (Ogra) for the first time, gas utilities have filed another petition for an increase of up to Rs54 per million British thermal unit (mmbtu) in tariff from January 2012 to cover revenue shortfall.
In separate petitions filed with Ogra, Sui Northern Gas Pipelines Limited (SNGPL) has sought an increase of Rs54 per mmbtu in gas tariff and Sui Southern Gas Company (SSGC) requested an increase of Rs21 per mmbtu from January next year. Ogra will determine new gas prices after conducting public hearings and listening to the stakeholders.
In similar petitions filed by the gas utilities earlier, Ogra allowed SNGPL to raise tariff by Rs15 per mmbtu and SSGC by Rs5 per mmbtu from January 1, 2012.
SSGC is generating funds to finance the controversial gas development schemes of parliamentarians. Ogra approved the first increase following directions of the petroleum ministry to finance parliamentarians’ schemes despite worst gas shortages in the country.
The federal government has already raised gas tariff by 13.55 per cent to meet revenue requirements of gas utilities in the ongoing financial year 2012. The increase in gas prices was for all consumers, except for fertiliser feed stock.
At present, gas prices stand at Rs107.87 per mmbtu for domestic consumers consuming up to 100 cubic metres per month, Rs215.74 for 100 to 300 cubic metres, Rs908.39 for 300 to 500 cubic metres and Rs1,142.75 for over 500 cubic metres.
The price for commercial consumers is Rs526.59 per mmbtu. Industrial consumers are paying Rs434.18 per mmbtu, cement companies Rs609.10 per mmbtu, Water and Power Development Authority (Wapda) Rs447.14 per mmbtu and compressed natural gas (CNG) station operators Rs571.88 per mmbtu.
Published in The Express Tribune, October 19th, 2011.
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