OGRA announces big increase in gas prices

Islamabad: The Oil and Gas Regulatory Authority (OGRA) has made a significant announcement regarding gas tariffs, implementing substantial increases to meet the demands of the International Monetary Fund (IMF). This move has raised concerns among domestic and industrial consumers alike.

As per the official notification issued by OGRA, the gas tariffs have been raised by a staggering 200 percent, with domestic consumers bearing the brunt of a 172 percent increase. These tariff adjustments are set to come into effect on November 1, causing immediate economic repercussions.

Among the most notable changes are the fixed monthly charges for protected domestic consumers, which have skyrocketed by an astounding 3900 percent, jumping from a mere Rs10 to Rs400.

Here are the key details of the revised gas tariffs, illustrating the per mmBtu rates for various consumer segments:

1. Consumers using 25 cubic meters will now pay Rs300 per mmBtu, up from the previous Rs200.
2. Consumers using 60 cubic meters will be charged Rs600 per mmBtu, a significant increase from the earlier Rs300.
3. Consumers using 100 cubic meters will pay Rs1,000 per mmBtu, compared to the previous rate of Rs400.
4. Consumers using 150 cubic meters will incur a charge of Rs1,200 per mmBtu, a substantial hike from the former Rs600.
5. Consumers using 200 cubic meters will pay Rs1,600 per mmBtu, up from Rs800.
6. Consumers using 300 cubic meters will face a substantial increase, with rates rising to Rs3,000 per mmBtu from the previous Rs1,100.
7. Consumers using 400 cubic meters will experience a considerable price hike, with charges reaching Rs3,500 per mmBtu from the earlier Rs2,000.

Other segments are also significantly impacted by the tariff changes:

• Tandoors will maintain the previous rate of Rs600 per mmBtu.
• Power plants will now pay Rs1,050 per mmBtu.
• The cement sector will face a substantial charge of Rs4,400 per mmBtu.
• The CNG sector will pay Rs3,600 per mmBtu.
• Export units will face a rate of Rs2,100 per mmBtu.
• Non-export units will be charged Rs2,200 per mmBtu.

It is important to note that the caretaker federal government initially informed the public of the impending gas price increases on October 30, with the implementation scheduled for November 1.

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

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

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