Sunday, May 5, 2024

Gas Tariff Skyrocketed by 112 in Pakistan

On Wednesday, the Oil and Gas Regulatory Authority (OGRA) announced a dramatic increase in rates by up to 112.3% for domestic customers, adding to the already increasing strain of inflation.

Also, the announcement defined petrol selling prices for specific country sectors and Domestic customers who use up to 0.25 hm3 of petrol per month will pay Rs121 per Million British Thermal Unit (MMBTU) under the “protected category,” while those who use up to 0.9 hm3 would pay Rs250 per MMBTU.

Domestic consumers who use more than 0.9 hm3 of petrol per month and pay up to Rs3,100 per MMBTU for over four hm3 or Rs200 per MMBTU for up to 0.25 hm3 fall under the non-protected category.

Further explaining the “protected category,” it stated that customers would “pay a fixed amount of Rs50/-(Less Meter Rent Rs.40)” in this group. Household users who consumed less than or equal to 0.9hm3 petrol on average throughout the previous four winter months, from November to February, fell into this group.

The minimum costs were set at Rs 172.58 per month. “The billing mechanism will be altered such that the domestic user (residential use) is offered the advantage of one previous/preceding slab,” it added.

For all off-takes, the authority has established a flat fee of Rs 1600 per MMBTU with a minimum charge of Rs 3,900 per month. Depending on the industry and amount of petrol consumed, prices for the commercial sector range from Rs 110 per MMBTU to Rs 1,650 per MMBTU. A flat cost of Rs 1,050 per MMBTU with a minimum fee of Rs 28,898 per month has been created for the power sector.

While OGRA would charge Rs200 per MMBTU petrol for consumption up to 0.25 hm3 per month in the ‘non-protected category’, Rs300 per MMBTU for consumption up to 0.6 hm3, Rs400 per MMBTU for consumption up to 1.5 hm3, Rs800 per MMBTU for consumption up to 2 hm3, and Rs1,100 per MMBTU for consumption above 2 hm3.

The authorities set a minimum monthly charge of Rs148.50 for the Special Commercial category and regulated petrol selling prices of Rs110 per MMBTU for consumption up to 1 hm3, Rs220 per MMBTU for consumption up to 2 hm3, and Rs 700 per MMBTU for use exceeding three hm3 (Roti Tandoors).

In the meantime, the authority has set the off-takes for the commercial sector at a flat rate of Rs. 1,650 per MMBTU for all establishments dealing in consumer goods for direct retail sales, including hotels including the hotel industry, malls, places of entertainment like cinemas, clubs, theatres, private offices, corporate firms, etc.

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