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Govt likely to jack up Gas Prices for Sindh & Balochistan Consumers

Web Desk by Web Desk
March 2, 2023
in National
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Gas prices for consumers in Sindh and Balochistan are likely to increase

Gas prices for consumers in Sindh and Balochistan are likely to increase

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Gas prices for consumers in Sindh and Balochistan are likely to increase as Gas companies asked Oil and Gas Regulatory Authority (OGRA) to hike the prices.

According to details, Sui Northern Gas Pipelines Limited (SNGPL) sought a price increase of Rs 730.39/MMBTU while Sui Southern Gas Company Limited (SSGCL) wants Rs 391.69/MMBTU with the start of the upcoming fiscal year 2023-24. The SSGC has requested OGRA to fix the gas price at Rs1060/MMBTU.

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In a statement, the regulatory authority said that Sui companies have sought price hikes for the determination of their Estimated Revenue Requirement/prescribed prices for the next financial year 2023-24.

Earlier this month to full fill IMF demands Oil and Gas Regulatory Authority (OGRA) jacked up gas prices by 113%.

OGRA said that gas prices were hiked from 16% to 113% for different sectors including domestic consumers. Domestic consumers were divided into 12 categories of protected and unprotected consumers.

On 13th February 2023, the Economic Coordination Committee (ECC) of the federal cabinet approved the summary for hiking the gas price by 112% for domestic consumers.

The federal government decided to put an additional financial burden of over Rs310 billion on gas consumers in order to revive IMF Program. The gas price will be hiked by 112% for domestic consumers.

It was learned that there will be 10 slabs of the gas pricing for domestic consumers. Rupees 500 fixed charges were imposed on unprotected residential consumers. Moreover, fixed charges of Rs 50 were also imposed on protected residential consumers.

The new prices for the export sector were increased up to 34% and fixed at Rs1,100 per MMBtu, a 13.9% hike for common industries and fixed at Rs1,200 per MMBtu, 32% hike for the CNG sector and fixed at Rs1,805 per MMBtu and 15% increase for cement companies and fixed at Rs1,500 per MMBtu.

The committee approved gas price revision for domestic, commercial, and power sectors for six months from January to June 2023.

According to a press statement issued by the finance ministry. The Ministry of Energy (Petroleum Division) had tabled a summary on Natural Gas Sale Pricing for FY 2022-23 and presented tariff proposals for all consumer categories in accordance with the Review of Estimated Revenue Requirement (RERR) for the fiscal year 2022-23.

Tags: burj newsGas pricesimfOGRAoil and gaspdm govermentpmshahbazsharif
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