OGRA drops gas bomb: Tariff hiked up to 74% from July 2022

ISLAMABAD: Amid biting inflation and shrinking buying strength, the Oil and Gas Regulatory Authority (OGRA) has dropped a fueloline bomb at the loads because it expanded the tariff for clients of sui fueloline businesses through as much as 74%, powerful from July 2022.

The regulator, in a notification issued on Wednesday, hiked the tariff of Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company (SSGC) for family clients, business sector, tandoors, captive strength flora and wellknown industries, which include export-orientated sector.

Interestingly, the regulator has abolished the sooner relevant slabs of fueloline intake and their respective costs and glued the charge at 952.17 in keeping with Million British Thermal Units (mmBtu) for SNGPL clients. Likewise, for SSGC, the prescribed fees were constant at Rs1161.91/mmBtu.

Having a cursory examine the choice, decrease slabs who eat much less and are nearly bad clients are maximum affected as their fueloline fees have tripled, at the same time as for the better slabs, the fees were actually decreased.

The regulator issued its choice after keeping public hearings at the petitions of SNGPL and SSGC in November 2022, wherein each businesses had demanded a big growth of their prescribed fueloline fees for the contemporary FY23 to assist them meet sales requirements.

SNGPL, working the fueloline community in Punjab and Khyber Pakhtunkhwa, sought Rs1,294.02/mmBtu, and SSGC which feeds Sindh and Balochistan sought Rs667.44/mmBtu growth.According to the modern choice of OGRA on their petitions, the prescribed fueloline fees for SNGPL were expanded through 74.42% at the same time as for SSGC, it’s been expanded through 67.75%.

In absolute terms, for SNGPL the common charge has been expanded through Rs406/mmBtu to Rs952.17/mmBtu. For SSGC too, the fueloline charge has been better through Rs469/mmBtu to Rs1,161.95/mmBtu.

The regulator has despatched its choice to the federal authorities.Now, the authorities might determine on it inside forty days of this notification. If the authorities does now no longer notify it, then it’ll mechanically come into effect.

For home clients, the prescribed fees for the bottom slab, which became in advance Rs121/mmBtu, has now been expanded to 952.17/mmBtu depicting an growth of 687%. For the following slab, it’s been expanded from Rs300/mmBtu to Rs952.17/mmBtu.Interestingly, for the best slabs, the fees were decreased after solving the price at Rs952.17.

Earlier, the second one slab became paying Rs1,107/mmBtu and the ultimate one became paying Rs1,460/mmBtu. Now evaluating those fees with the brand new fees, there’s a significant discount in fueloline fees for wealthy clients.

Similarly, for business clients (tandoor), the 5 slabs were abolished, and the price has been constant at Rs952.17/mmBtu. Earlier, the tandoors` fueloline tariff became Rs110/mmBtu for the bottom slab and Rs700 for the best slab.For the export-orientated sector (wellknown industries), the charge has been expanded from the prevailing Rs819 to Rs952.17/mmBtu.

For the captive strength flora, the fueloline charge has been expanded from Rs852 to Rs952.17. Interestingly, fees for CNG, cement and fertiliser sectors were decreased.For the SSGC clients, slabs were abolished and the fees constant at Rs1161.91/mmBtu.