OGRA announces big increase in gas prices

WEB DESK: The Oil and Gas Regulatory Authority (OGRA) has announced a significant increase in gas tariffs to fulfill a demand from the International Monetary Fund (IMF).

As per the notification issued by OGRA, the gas tariffs have been raised by 200 per cent. For domestic consumers, the increase stands at 172 per cent, and these changes will take effect on November 1.

Fixed monthly charges for protected domestic consumers have surged by 3900 per cent, soaring from Rs10 to Rs400.

Here are the key details of the revised gas tariffs:

1. Consumers using 25 cubic metres will now pay Rs300 per mmBtu, up from Rs200
2. Consumers using 60 cubic metres will pay Rs600 per mmBtu, an increase from Rs300
3. Consumers using 100 cubic metres will pay Rs1,000 per mmBtu, up from Rs400
4. Consumers using 150 cubic metres will pay Rs1,200 per mmBtu, a hike from Rs600
5. Consumers using 200 cubic metres will pay Rs1,600 per mmBtu, an increase from Rs800
6. Consumers using 300 cubic metres will pay Rs3,000 per mmBtu, up from Rs1,100
7. Consumers using 400 cubic metres will pay Rs3,500 per mmBtu, a rise from Rs2,000
8. Tandoors will the previous rate of Rs600 per mmBtu
9. Power plants will pay Rs1,050 per mmBtu
10. The cement sector will pay Rs4,400 per mmBtu
11. The CNG sector will pay Rs3,600 per mmBtu
12. Export units will pay Rs2,100 per mmBtu
13. Non-export units will pay Rs2,200 per mmBtu

It is worth noting that the caretaker federal government initially notified the public of the increase in gas prices on October 30, with implementation set for November 1.

The Petroleum Division issued a notification outlining the significant price hikes for domestic, export, non-export units, CNG, cement, and other sectors.

This decision followed the approval of various summaries, including the revision of natural gas pricing, by the Economic Coordination Committee (ECC) of the Cabinet on October 23.

The Ministry of Energy’s (Petroleum Division) proposal for the revision of natural gas sale pricing for the fiscal year 2023–24 was also approved, becoming effective prospectively on November 1, 2023, instead of the initially planned date of October 1, 2023.

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