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MPS Preview: High for Longer

OGRA announces new gas prices effective from November

OGRA approves up to 36% increase in gas prices
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November 08, 2023 (MLN): After a long-awaited decision on the gas price hike, the Oil and Gas Regulatory Authority (OGRA) has finally issued a notification regarding the increase in natural gas sale prices and minimum charges.

The new prices will be applicable from November 01, 2023.

The notified prices are specified in the schedule below, in respect of natural gas sold by the following companies to various categories of their retail consumers.

Domestic Sector:

Thee following is applicable for standalone meters, mosques, churches, temples, madrassas, other religious places, and hostels.

Revised Gas Sales Prices
PKR/MMBtu Old Rate New Rate Change in %
Protected      
Up to 0.25 hm3/month 121 121 0%
Up to 0.5 hm3/month 150 150 0%
Up to 0.6 hm3/month 200 200 0%
Up to 0.9 hm3/month 250 250 0%
Non-Protected      
Up to 0.25 hm3/month 200 300 50%
Up to 0.6 hm3/month 300 600 100%
Up to 1 hm3/month 400 1,000 150%
Up to 1.5 hm3/month 600 1,200 100%
Up to 2 hm3/month 800 1,600 100%
Up to 3 hm3/month 1,100 3,000 173%
Up to 4 hm3/month 2,000 3,500 75%
Above 4 hm3/month 3,100 4,000 29%

There will be one preceding slab benefit available to domestic consumers except for consumers above 4hm3.

Moreover, the protected category will pay a fixed charge of Rs400 per MMBtu.

Whereas the non-protected category will pay a fixed charge of Rs1,000 for up to 1.5 hm3, while Rs. 2,000/- for exceeding consumption of 1.5 hm3.

To note, the minimum charges for the protected and non-protected categories are Rs107.37 and Rs177.47 per month respectively.

The protected category includes a domestic consumer whose average consumption of the last four winter months i.e. November to February is below or equal to 0.9 hm3.

Meanwhile, the non-protected category includes a domestic consumer other than the one in the protected category.


Furthermore, for government and semi-government offices, hospitals, clinics, maternity homes, government guest houses, armed forces messes, langars, universities, colleges, schools and private educational institutions, orphanages, and other charitable institutions along with hostels and residential colonies to whom gas is supplied through bulk meters including captive power.

The tariff for captive gas use in this category will be charged as per the captive power category i.e. Rs2,500 per MMBTU.

All off-takes at flat rate of       Rs2,000 per MMBTU
Minimum charges                                                    Rs3,900 per month

Special Commercial (Roti Tandoors):

Revised Gas Sales Prices
PKR/MMBtu New Rate
Up to 0.5 hm3/month 110
Up to 1 hm3/month 110
Up to 2 hm3/month 220
Up to 3 hm3/month 220
Up to 3 hm3/month 700
   

The minimum charges for this category are Rs148.5 per month.

Commercial:

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 cinemas, clubs, theaters and private offices, corporate firms, etc are included in this category.

Accordingly, the revised prices for this category have been increased to Rs3,900 MMbtu from Rs1,650/MMbtu.

All off-takes at flat rate of       Rs3,900 per MMBTU
Minimum charges                                                    Rs6,415 per month

To note, these same revised rates also apply to the fourth category, i.e ice factories, 

General Industrial:

This category includes all consumers engaged in the processing of industrial raw material into value-added finished products irrespective of the volume of gas consumed but excluding such industries for which a separate rare has been prescribed.

All off-takes at flat rate of       Rs2,200 per MMBTU
Minimum charges                                                    Rs35,540 per month

Captive Power (General Industry):

Captive Power Plant/Unit means an industrial undertaking/unit carrying out the activity of power production (with or without co-generation) for self-consumption and/or for sale of surplus power to a Distribution Company or bulk-power consumer.

All off-takes at flat rate of       Rs2,500 per MMBTU
Minimum charges                                                    Rs36,653 per month

Export Oriented:

General Industry All off-takes at flat rate of       Rs2,100 per MMBTU
Minimum charges                                                    Rs27,616 per month
Captive All off-takes at flat rate of       Rs2,400 per MMBTU
Minimum charges                                                    Rs28,729 per month

CNG:

All off-takes for CNG have been revised to Rs3,600 per MMbtu, with minimum charges of Rs46,229 per month.

Cement:

All off-takes for this category have been increased to Rs4,400 per MMbtu from Rs1,805 per MMbtu, with minimum charges of Rs45,588.9 per month.

Fertilizer Companies:

On the SNGPL system, the Engro Fertilizer Company Limited, when utilizing gas as feedstock, is subject to a provisional rate of $0.70 per MMBtu.

Moreover, for gas used as fuel for the generation of electricity, steam, and for the usage of housing colonies, the rate stands at Rs1,580 per MMBtu.

Meanwhile, on the SSGCL system, the new flat rate for Fauji Fertilizer Bin Qasim Limited has been revised to Rs580 per MMBtu for gas used as feedstock.

Furthermore, for gas used as fuel for the generation of electricity, steam, and for the usage of housing colonies, the rate also stands at Rs1,580 per MMBtu.

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Posted on: 2023-11-08T16:44:15+05:00