OGRA elevated gas prices by 300 percent
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has proposed to hike gas prices for domestic consumers by 300 percent while only 30 percent increase has been made for commercial, industrial, power and other sectors.
According to sources, the proposal forwarded by OGRA to the interim government supports, increase of Rs204 per MMBTU for the domestic consumers. The per MMBtu price will increase from existing Rs110 to Rs314.67 for the domestic consumers using less than 100 cubic meters of gas, and from Rs220 to Rs629.33 for those consuming between 100-300 cubic meters gas, which is an increase of 286 percent.
OGRA has made the hike while raising by average gas price Rs4 per Million British Thermal Unit (MMBTU) and has set the new gas price at Rs629/MMBTU.
Although former Pakistan Muslim League-Nawaz (PML-N) government artificially maintained the gas price for the last four years, however, ex-Prime Minister Shahid Khaqqan Abbasi at the end of the constitutional tenure of his government during the month of May 2018 has approved to collect Rs 117 billion from gas consumers in four installments.
It is observed that masses will have to bear Rs 160 billion heavy burden due to this gas price hike.
It is further learnt that Sui Northern Gas Pipelines Limited (SNGPL) will collect Rs11 billion from its consumers and Southern Gas Company Limited (SSGCL) will collect Rs10 billion on account of gas theft and leakages.
Similarly, to gain public/voters sympathy during upcoming general elections 2018, outgoing PML-N government launched new gas schemes and for this Rs23 billion will be collected from the masses.
Furthermore, OGRA while changing national gas price mechanism has separated cost of gas for SNGPL and SSGCL. Also, during next financial year, the first installment of Rs 29bln will be collected.