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ISLAMABAD: A heavy, almost knockout blow is to be delivered on New Year’s day to the already beleaguered Pakistanis in the shape of huge rise in gas tariff for consumers of all categories.
It has been decided that the Oil and Gas Regulatory Authority (Ogra) will increase gas prices of Sui Northern by Rs31.12 per MMBTU (million British thermal units) and Sui Southern by Rs28.28 per MMBTU to be effective from January 1, 2013, till June 30, 2013, an Ogra decision shows, a copy of which is available with The News.
The regulator has sent a summary to the Ministry of Petroleum and Natural Resources with the said raise in gas tariff. The gas tariff will be increased for all categories of consumers, but it is the government’s prerogative to decrease the power tariff for the domestic sector. The government will have to increase the tariff of other consumers accordingly to offset the impact.
The gas price of Sui Northern has been increased by 9.87 percent and Sui Southern by 6.14 percent.
In the case of Sui Northern, consumers will pay for 4.5 percent gas that is stolen and shown under the head of line losses.
However, consumers of Sui Southern will pay for the 7 percent gas that is stolen by unscrupulous persons.
Sui Northern had submitted a petition with Ogra seeking an increase by Rs67.66 per MMBTU in the average prescribed price with effect from January 01, 2013.
Sui Northern had sought the increase mainly because of the increase in wellhead gas price due to the devaluation of rupee parity against the dollar, increase in T&D cost and operating cost of a new sub-region (Vehari) and Rs9.4 billion additional expenditure on distribution development, new connections, IT and UFG reduction plans for the said year. Rs2 billion had been requested on account of HR cost in addition to the increase claimed by SNGPL.
However, Ogra approved the rise in gas tariff of Sui Northern by Rs31.12 per MMBTU, which translates into a 9.87% increase in the category-wise prescribed prices effective from January 1, 2013.
The regulator has allowed Rs1.5 billion on account of the UFG reduction plan for the year as requested by the petitioner since it has appreciated the petitioner’s UFG control related activities and provided budgetary support to control this menace.
The authority has allowed Rs29 million capital and Rs7 million operating expenses under this head for the said year in view of the operational requirement of the petitioner.
The authority has allowed Rs1 billion additional amount on account of HR costs on a provisional basis in order to enable the petitioner to meet the legitimate demand of its employees, particularly subordinate staff. Final adjustment under this head will be made after the outcome of the HR benchmark study which is in progress.
The authority, while taking into account the viewpoint of all stakeholders, has determined the UFG benchmark at 4.50 percent.
It has been decided that the Oil and Gas Regulatory Authority (Ogra) will increase gas prices of Sui Northern by Rs31.12 per MMBTU (million British thermal units) and Sui Southern by Rs28.28 per MMBTU to be effective from January 1, 2013, till June 30, 2013, an Ogra decision shows, a copy of which is available with The News.
The regulator has sent a summary to the Ministry of Petroleum and Natural Resources with the said raise in gas tariff. The gas tariff will be increased for all categories of consumers, but it is the government’s prerogative to decrease the power tariff for the domestic sector. The government will have to increase the tariff of other consumers accordingly to offset the impact.
The gas price of Sui Northern has been increased by 9.87 percent and Sui Southern by 6.14 percent.
In the case of Sui Northern, consumers will pay for 4.5 percent gas that is stolen and shown under the head of line losses.
However, consumers of Sui Southern will pay for the 7 percent gas that is stolen by unscrupulous persons.
Sui Northern had submitted a petition with Ogra seeking an increase by Rs67.66 per MMBTU in the average prescribed price with effect from January 01, 2013.
Sui Northern had sought the increase mainly because of the increase in wellhead gas price due to the devaluation of rupee parity against the dollar, increase in T&D cost and operating cost of a new sub-region (Vehari) and Rs9.4 billion additional expenditure on distribution development, new connections, IT and UFG reduction plans for the said year. Rs2 billion had been requested on account of HR cost in addition to the increase claimed by SNGPL.
However, Ogra approved the rise in gas tariff of Sui Northern by Rs31.12 per MMBTU, which translates into a 9.87% increase in the category-wise prescribed prices effective from January 1, 2013.
The regulator has allowed Rs1.5 billion on account of the UFG reduction plan for the year as requested by the petitioner since it has appreciated the petitioner’s UFG control related activities and provided budgetary support to control this menace.
The authority has allowed Rs29 million capital and Rs7 million operating expenses under this head for the said year in view of the operational requirement of the petitioner.
The authority has allowed Rs1 billion additional amount on account of HR costs on a provisional basis in order to enable the petitioner to meet the legitimate demand of its employees, particularly subordinate staff. Final adjustment under this head will be made after the outcome of the HR benchmark study which is in progress.
The authority, while taking into account the viewpoint of all stakeholders, has determined the UFG benchmark at 4.50 percent.
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