After the ‘mini-budget’ shocks started, following the hike in petroleum products, the government substantially hiked natural gas prices for domestic and general businesses, including export-oriented sectors, captive power plants, CNG and IPPs, and commercial sectors.
The rise varied between 8% and 112%. However, Gas prices for tandoors remain unchanged. The new price is effective from January 2023.
On the advice of the Petroleum Division, the Oil and Gas Regulatory Authority (Ogra) issued an announcement. The measure was taken to comply with a long-delayed bailout from the International Monetary Fund (IMF).
The decision of the Economic Coordination Committee (ECC) regarding the price of gasoline will take effect on January 1, 2023, as announced by the Petroleum Division of the Ministry of Energy and authorized by the federal cabinet.
According to an OGRA spokeswoman, each category of retail natural gas consumers of the sale pricing after obtaining the information above.
Nationwide, Sui Southern Gas Company Limited and Sui Northern Gas Pipelines Limited networks will have the same tariff.
The price per mmBtu for household consumers consuming up to 0.1 HM cu ft of gas per month has increased by 33.3%, from Rs300 to Rs400. Similarly, the consumption rate for users consuming up to 2HM cubic feet per month has increased by 44.7% to Rs 800/mmBtu and for those consuming up to 3HM cubic feet per month has increased by 49.0% to Rs 1100/mmBtu.
The rate increase is greatest for the more expensive consumer tiers.
The pricing has increased by 80.7% to Rs 2000/mmBtu for users who use up to 4HM cubes per month and by 112.33% to Rs 3,100/mmBtu for consumers who use more than 4HM cubes per month.
According to the OGRA notification, the gas off-take for the CNG sector has been set at a fixed rate of Rs1,500 mmBtu, as opposed to the previous pricing of Rs1,371/mmBtu.
It is important to observe that the home consumption slabs have increased from six to eight. At the same time, four more slabs have been added to the protected category.
The Independent Power Producers (IPPs) bulk off-take pricing has increased from Rs857/mmBtu to Rs1,050/mmBtu.
The price for captive gas consumers has increased from Rs1,087/mmBtu to Rs1,200/mmBtu. Captive plants are ones that an industrial enterprise or unit has constructed to produce electricity for their consumption and/or sell the surplus to a bulk power consumer or a distribution company. As a result, the minimum monthly gas rates for captive power plants have risen from Rs36,450 to Rs36,653.
Regardless of whether you use the gas, you must pay the gas utility’s minimum fees. In other words, it is comparable to the meter rental fee on utility bills or the line rental fee for a PTCL phone connection.
The minimum monthly tariffs for power plants owned by Wapda and K-Electric remain at Rs28,898.
The cement industry’s tariff has raised by 170.5% to Rs. 1,500/mmBtu.
The minimum monthly charge has remained at Rs6,415 while the rate for all commercial units that have been in operation for some time has raised by 28.6% from Rs1,283/mmBtu to Rs1,650/mmBtu.
The commercial units include those owned by local governments or engaged in the direct sale of consumer goods, such as cafes, bakeries, milk shops, tea stalls, canteens, barber shops, laundries, hotels, malls, entertainment venues such as cinemas, nightclubs, and theatres, as well as private offices, corporate businesses, and ice factories.
The minimum monthly charge for tandoors has been maintained at Rs148.51 per month, while the rate for the remaining categories will not change.
