Tuesday, June 25, 2024
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Government Shocked the Nation by Doubling Gas Price

Government raises natural gas prices, commercial sector by 8% to 112%.

Tandoors, however, continue to be charged the same price for gas. Beginning in January 2023, the revised prices will be in effect.

The change occurs soon after Wednesday’s announcement of a significant price increase for petroleum goods.

Following the Petroleum Division’s recommendation, the Oil and Gas Regulatory Authority (Ogra) published a notification. In order to comply with a long-stalled financial rescue from the International Monetary Fund, the action was conducted (IMF).

Domestic clients were formerly paid Rs300/mmBtu for gas consumption up to 0.1HM cube each month; this has since raised to Rs400, representing an increase of 33.3%.

Similar to this, the consumption tariff has increased for consumer categories up to 2HM cube/month by 44.7% to Rs800/mmBtu and up to 3HM cube/month by 49% to Rs1100/mmBtu.

The tariff has been raised the greatest for higher tiers of consumers.

Consumers who consume up to 4HM cubes per unit have seen a tariff rise of 80.7% to Rs 2000/mmBtu, and those who consume more than 4HM cubes per month have seen a tariff increase of 112.3% to Rs 3,100/mmBtu.

In contrast to earlier pricing of Rs1,371/mmBtu, the gas off-take for the CNG sector has been determined at a flat amount of Rs1,500 mmBtu, according to the Ogra notification.

It’s interesting to observe that the consumption slabs for domestic consumers have expanded from six to eight. In the meantime, four additional slabs were added to the protected category.

The bulk off-take pricing for Independent Power Producers (IPPs) 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 those that have been set up by an industrial venture or unit to generate electricity for their own use and/or to sell the excess to DISCO or bulk power users.

The minimum gas rates for captive power plants have raised from Rs36,450/month to Rs36,653/month.

No matter whether you use the gas or not, you must pay the minimum fees assessed by the gas provider. In other words, it is just like the power bill’s meter rent or the phone connection’s line rent from PTCL.

The bulk tariff for Wapda and K-power Electric’s plants has raised from Rs857 to Rs1,050/mmBtu, but the minimum charges remain at Rs28,898/month.

The cost for the cement industry has increased by 17.5% to Rs. 1,500/mmBtu.

The cost for all existing commercial units has gone up by 28.6% to Rs1,650/mmBtu from Rs1,283/mmBtu while the minimum charges have remained the same at Rs6,415/month.

The commercial units include those owned by local governments or those engaged in the direct sale of consumer goods, such as cafes, bakeries, milk shops, tea stalls, canteens, barber shops, laundries, hotels, malls, places of entertainment like cinemas, clubs, and theatres, as well as private offices, corporate businesses, and ice factories.

The minimum monthly fee for tandoors has remained at Rs. 148.5/month, and the pricing will stay the same for all categories.

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