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Gas prices skyrocket: OGRA announces up to 112% hike in rates

Gas prices skyrocket: OGRA announces up to 112% hike in rates
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February 16, 2023 (MLN): Exacerbating the already mounting inflationary pressure, the Oil and Gas Regulatory Authority (OGRA) on Wednesday notified a massive surge in prices by up to 112.3% for domestic users.

The notification also established gas sale prices for various sectors in the country issued According to the details, under the "protected category," domestic users who consume up to 0.25hm3 gas per month will pay Rs121 per Million British Thermal Unit (MMBTU), while users who consume up to 0.9 hm3 will pay Rs250 per MMBTU.

The non-protected category includes domestic consumers who consume more than 0.9 hm3 of gas per month and pay Rs200 per MMBTU for up to 0.25 hm3, Rs300 per MMBTU for up to 0.6 hm3, and up to Rs3,100 per MMBTU for over 4 hm3.

Elaborating on the “protected category,” it said under this group, consumers would “pay a fixed charge of Rs50/-(Less Meter Rent Rs.40).” Domestic users, whose average consumption of last four winter months i.e. November to February would be below or equal to 0.9hm3 gas, to fall in this category.

“The billing mechanism will be revised so that the benefit of one previous/preceding slab is available to the domestic consumer (residential use),” it said determining minimum charges at Rs 172.58 per month.

The notification also established rates for government and semi-government offices, hospitals, clinics, maternity homes, educational institutions, hostels, residential colonies, orphanages, and other charitable institutions.

The authority has set a flat rate of Rs 1600 per MMBTU with a minimum charge of Rs 3,900 per month for all off-takes. Rates for the commercial sector range from Rs 110 per MMBTU to Rs 1,650 per MMBTU depending on the industry and amount of gas consumed. For the power sector, a flat rate of Rs 1,050 per MMBTU with a minimum charge of Rs 28,898 per month has been established.

Whereas in the “non-protected category,” OGRA would charge Rs200 per MMBTU gas for consuming up to 0.25 hm3 per month, Rs300 per MMBTU for up to 0.6 hm3, Rs400 per MMBTU for up to 1 hm3, Rs600 per MMBTU for up to 1.5hm3, Rs800 per MMBTU for up to 2hm3, Rs1,100 per MMBTU for up to 3hm3, Rs2,000 per MMBTU for up to 4hm3 and Rs3,100 per MMBTU for using above 4 hm3.

As per OGRA, a “non-protected category Includes a domestic consumer other than the one in a protected category."

The authority fixed gas sale price of Rs110 per MMBTU for consuming up to 1 hm3, Rs220 per MMBTU for up to 2hm3 and Rs 700 per MMBTU for over 3hm3, with minimum charges of Rs148.50 per month for the category of Special Commercial (Roti Tandoors).

Meanwhile, in the commercial sector, the authority has determined all off-takes at a flat rate of Rs1,650 per MMBTU for all establishments registered as commercial units with local authorities or dealing in consumer items for direct commercial sales like cafes, bakeries, milk shops, tea stalls, canteens, barber shops, laundries, hotels including hotel industry, malls places of entertainment like cinema, clubs, theaters, private offices, and corporate firms, etc.

The minimum charges for aforesaid shops have been established at Rs6,415 per month.

The ice factories and general industrial sector will pay a flat rate of Rs1,650 and Rs1,200 per MMBTU respectively, while captive power plants and export-oriented industries will pay Rs1,200 and Rs1,100 per MMBTU.

The CNG and cement sectors will pay Rs1,805 and Rs1,500 per MMBTU respectively.

Fertilizer companies will pay a flat rate of Rs510 per MMBTU for gas used as feedstock and Rs 1,500 per MMBTU for gas used as fuel. Engro Fertilizer Company Limited will pay a higher rate for feedstock usage.

The power sector, including WAPDA and KESC’s power stations, and independent power producers, will pay a flat rate of Rs1,050 per MMBTU, with varying minimum charges.

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Posted on: 2023-02-16T10:58:59+05:00