Islamabad:
On Sunday, the government announced an increase in the fixed fees on gas bills by 50% and also combined gases for non-residential consumers.
According to a review issued by Oil and Gas Regulatory Authority (OGRA) on Sunday, the fixed taxes were increased by RS200 to the RS600 for the protected category of domestic consumers.
In the non-protected category, the fixed fees were increased from RS1,000 to RS1.500 for a monthly consumption of up to 1.5 HM3. Likewise, the fixed fees for consumption exceeding 1.5 HM3 were attached to RS3,000.
The protected category includes a domestic consumer whose average consumption of the last 4 winter months (November to February) must be below or equal to 0.9 HM3. In contrast, the non-protected category includes a domestic category whose average consumption of the last 4 months must be above 0.9 HM3.
The revised customs also apply to various institutional and commercial units. Government institutions, semi-government agencies, hospitals and educational institutions will now be charged RS3,175 per year. MMBTU. For traditional tandoors (bread ovens), gas rates are set between RS110 and RS700 per day. MMBTU, depending on levels of use.
Commercial consumers now pay RS3,900 per year. MMBTU, while general industrial users will be charged RS2,300 per MMBTU. Captive stream manufacturers – Industries that generate their own electricity – pay RS3,500 per year. MMBTU, and CNG stations will be invoiced to RS3,750 per MMBTU.
Cement factories are facing the highest tariff among industrial users with rates set to RS4,400 per year. MMBTU. Fertilizer plants are charged RS1.597 per MMBTU. For K-electric and other electricity generation companies, the new customs are addressed to RS1.225 per year. MMBTU.
Oil & Gas Regulatory Authority last month decided the estimated revenue requirements (ERR) for FY 2025-26 for both SNGPL and SSGCL. According to the provisions, SNGPL requires revenue of RS534.5 billion, and SSGCL requires revenue of RS354.2 billion respectively to sail through the FY 2025-26. The cumulative revenue requirements for both SUI companies are RS888.6 billion for FY 2025-26.
The law requires the federal government to ensure that the prices of consumer gas sales should not be less than the need for income set by the authority. At the previous notified consumer gas sales prices, which were with effect from February 1, 2025, the estimated revenue from both SUI companies at the end FY 2025-26 RS847,714 billion.
Some of the ECC members criticized giving a guaranteed 24% return on assets to SUI companies, detracting from the efforts to improve efficiency by reducing line loss.
Prices were changed to accommodate a condition of the international currency afield to adjust gas prices.
