ISLAMABAD, The Federal Minister for Petroleum and Natural Resources Syed Naveed Qmar has said, to simplify the domestic sector billing, the number of slabs were been reduced from seven to four and also the billing mechanism is also being revised so as to allow benefit of all slabs to consumers.
In a statement, he said the revision is proposed while ensuring that the same would result in direct relief in monthly bills. The new domestic sector tariffs are as under:
Rs/MMBTU
0-100m 3 per month 95.00
100-300m3 per month 190.00
300-500m3 per month 800.00
Above 500m3 per month 1,006.40
“The revised billing mechanism will allow benefit of all slabs to consumers resulting in reduced gas bills, in keeping with our efforts to provide relief to the domestic consumers, in particular,” the Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar said commenting on the new billing mechanism.
A detailed calculation sheet indicating comparison of current tariffs and resultant monthly gas bills at different consumption levels viz-á-viz the proposed tariffs and resultant gas bills is also given.
Benefit of above proposed revisions will also be partially extended to the Special Commercial (Roti Tandoors) and Bulk Meters consumers.
Gas sale prices for other sectors like industrial, CNG, Power, Fertilizer and Cement sectors are not being revised.
Progressive tariff regime is being followed for gas supplies to domestic sector wherein tariff increases with the increase in gas consumption. Present billing mechanism for domestic consumers has been so designed that allows lower price benefit (subsidy) of only two preceding slabs. This billing mechanism was introduced in July-2008 to discourage wasteful use of gas by gas guzzling consumers, by way of economic regulations. Detail of present slabs for domestic sector billing w.e.f. 01.01.2010 is as under:
Domestic Sector
0-50m3 per month 95.01
50-100m3 per month 99.48
100-200m3 per month 181.10
200-300m3 per month 383.42
300-400 m3 per month 498.80
400 - 500 m3 per month 648.43
Over 500 m3 per month 860.15
Both the Gas utility Companies viz: Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) are engaged in gas purchase from E&P Companies and transmission, distribution and sale thereof to various categories of consumers. They are operating on cost plus guaranteed return on assets formulae under license from Oil and Gas Regulatory Authority (OGRA).
Under Section 8(1) of the OGRA Ordinance, 2002, OGRA has to determine the revenue requirements of gas utility companies for a particular financial year and advise the prescribed price of natural gas to the Federal Government for each category of retail consumers. Based on the revenue requirements of both gas companies for 2010-11, OGRA has determined prescribed prices as Rs 321.92/MMBTU and Rs 315.15/MMBTU for SNGPL and SSGCL are respectively.
Section 8(3) of the OGRA Ordinance empowers Federal Government to advise category wise sale prices, based on prescribed prices as determined by OGRA. Sale prices, in case fixed different from prescribed prices on socio economic consideration, are always determined so as to ensuring meeting revenue requirements as determined by OGRA.
Present gas prices w.e.f 01.01.2010 for different sectors are given below:
Sector Rs/MMBTU
Commercial 463.76
Industries (including Captive Power) 382.37
CNG Stations 503.64
Cement Factories 536.42
Power Stations 393.79
Independent Power 332.36
Fertilizer
Feed Stock (old plants) 102.01
Feed Stock (new plants/addl. allocation) 58.49
Fuel Stock 382.37
The above prices will also remain intact for next six months.
Comparison of current tariffs and resultant monthly gas bills at different consumption levels viz-á-viz the proposed tariffs and resultant gas bills.
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