The Oil and Gas Regulatory Authority (OGRA) increased the tariff for two Sui Gas companies by up to 74%, effective from July 2022.
The regulator raised Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company (SSGC) tariffs for household consumers, the business sector, tandoors, captive power plants, and general industries, including the export-oriented sector.
The regulator abolished gas usage slabs and rates and set the price at 952.17 per Million British Thermal Units (mmBtu) for SNGPL consumers. As a result, SSGC’s pricing is Rs1161.91/mmBtu.
Lower slabs, who consume less and are almost impoverished consumers, are most affected because their gas prices have tripled, whereas upper slabs’ prices have decreased.
The regulator delivered its verdict after public hearings on SNGPL and SSGC’s petitions in November 2022. Both firms had requested a considerable increase in their prescribed gas prices for FY23 to enable them to achieve revenue obligations.
SNGPL, which operates the gas network in Punjab and KP, wanted Rs1,294.02/mmBtu; SSGC, which feeds Sindh and Balochistan, wanted Rs667.44/mmBtu.
OGRA’s last judgment on their petitions boosted SNGPL’s gas prices by 74.42% and SSGC’s by 67.75%.
SNGPL’s average price rose by Rs406/mmBtu to Rs952.17/mmBtu. SSGC’s gas price rose by Rs469/mmBtu to Rs1,161.95/mmBtu.
The regulator has notified the government.
The government would decide after 40 days. If the government doesn’t inform it, it takes effect.
Domestic consumers’ lowest slab price has gone from Rs121/mmBtu to 952.17/mmBtu, a 687 percent increase. The next slab is Rs952.17/mmBtu, up from Rs300/mmBtu.
After setting the rate at Rs952.17, the prices of the two slabs decreased.
The second slab paid Rs1,107/mmBtu, and the last Rs1,460/mmBtu. So rich individuals will save money on gas with the increased prices.
The five slabs have been eliminated for business consumers (tandoor), and the pricing is Rs952.17/mmBtu. Previously, the lowest tandoor gas rate was Rs110/mmBtu, and the highest was Rs700.
For export-oriented companies, the price rose from Rs819 to Rs952.17/mmBtu.
Captive power plant gas prices rose from Rs852 to Rs952.17. CNG, cement, and fertiliser prices fell.
SSGC has eliminated slabs and set rates at Rs1161.91/mmBtu.
 increased the tariff for two Sui Gas companies by up to 74%, effective from July 2022.){kind=link}