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OGRA proposes 41 % hike in gas tariff

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ISLAMABAD – The Oil and Gas Regulatory Authority (OGRA) recommended further increases in gas prices, the sources privy to the development said on Saturday.

The sources said that OGRA proposed a 41% increase in gas prices, and after government approval, the hike could take effect from next month.

The sources also said that OGRA already increased gas tariffs by 400% in the past year.

Just a day earlier, the Sui Southern Gas Company issued notifications regarding estimation and payment of monthly rates for domestic consumers based on OGRA’s directive.

The new tariff was implemented since November, and under the new policy, domestic consumers are divided into two categories: first category is called “non-protected”, and the second category is “protected”.

Under this classification, domestic consumers who have used an average of 91 CM or more gas during the 4-month period from November to February will be termed as “non-protected”, while those using less than 90 will be termed as protected.

Furthermore, consumers in the “Protected” category will have to pay a fixed charge of Rs400 on every bill. The minimum bill for a “protected” consumer will be Rs650 , and the maximum will be Rs1350, whereas for a “Non-Protected” consumer, the minimum bill will be Rs1440 to Rs87000. Both categories’ bills will include a meter rent of Rs400 rupees and 18% General Sales Tax, regardless of gas usage.

A “noon-protected” consumer will have to pay a fixed charge of at least Rs1000 or more up to Rs2000 on 150CM. The average amount of the bill will increase with increased gas usage in both categories.

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