143% Hike in gas price
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VCheng
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It is all the previous gormit's fault, obviously.
The real aim is to reduce or eliminate energy subsidies as part of the pre-game negotiations with international lenders, one may presume.
pin gu
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"Government buy gas at around Rs.630 per unit. Thats about 5.5 dollars. And then sell at about Rs.157. Which is about 1.25 Us dollar."
How will you solve this issue ?
Did the minister explained the steps taken to recover Rs50 billions from big defaulters & thieves? ---- the govt. has gone the usual way increase in tariffs.
Mr. Minister was explaining the increasing in Bill from 252 to 275, but he didn't explained the increase in Bills of commercial,industrial, fertilizer sectors ---- should have done that also?
brace for the impact (inflation)
pin gu
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https://defence.pk/pdf/threads/economy-yaraneh-and-iranian-protests.542483/
Same problem here and our government made a huge mistake . they didn't changed price of fuels for a long time now we are facing other problems too .
keeping fuel price below universal price = stealing from your future and using it today
Same problem here and our government made a huge mistake . they didn't changed price of fuels for a long time now we are facing other problems too .
keeping fuel price below universal price = stealing from your future and using it today
Blame game must end now (this lollipop can't sell for long) --- PTi knew what they were going into ---- was hearing Andleeb Abbas that it was the previous govt which approved increased tariffs in June, they are not owning even their own decisions.
VCheng
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The blame game will work for a few months given the mentality prevailing in Pakistan. The honeymoon usually lasts about two years, then things go south big time.
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insight-out
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Don't hold your breath for an answer. We have quite a few people here who only criticize, but offer no viable solutions.
Bablu Fawad chaudhry is also trying to explain that bills has increased from 252 to 275 --- Why isn't he explaining the increase in amount of Bill of cement, fertilizer, power sector and the impact passed on to the public?
Where is Asad Umar hiding, he made an emotional speech and criticized high taxes and increase in utility tariffs -
Where is Asad Umar hiding, he made an emotional speech and criticized high taxes and increase in utility tariffs -
RealNapster
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Gas prices increased by 143% for those using more then 400 cubic meters gas. Bhai tery gar me itna gas use hota hy kia ?? Obviously factories, industries and commercial units he itna gas se karty hy. Aqal kay naakhun le mery bhai.
That would be 143%.
Read above
Devil Soul
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Govt raises gas prices by up to 143%
By Shahbaz Rana
Published: September 17, 2018
41SHARES
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The decision will hurt as many as 9.4 million domestic users. PHOTO: FILE
ISLAMABAD: The government on Monday increased natural gas prices by up to 143% to recover Rs94 billion from consumers, in effect slashing consumer subsidies that were a fiscal drag on the government’s budget.
The increase may make gas utility companies financially viable but will stoke inflation due to increase in the price of commodities.
The decision will hurt as many as 9.4 million domestic users – 3.6 million of them falling in the lowest income slab and another 2.63 million in the second lowest income group. Due to the increase in gas prices for the power sector, the electricity will become expensive by 12%.
The Economic Coordination Committee (ECC) of the cabinet allowed raise in the gas prices for domestic consumers in the range of 10% for the lowest slab consumers to 143% for the highest slab domestic consumers.
It also approved increasing gas prices for commercial and industrial consumers from 30% to 57% that will increase the prices of fertiliser, manufacturing units, electricity generation, cement and Compressed Natural Gas (CNG). But it has protected five export-oriented sectors from the increase.
The decision will take effect from the date of ratification of the ECC decision by the federal cabinet. Up to 143% increase in gas prices is expected to follow around 35% increase in electricity prices in the coming weeks.
High gas prices hurt nobody except the very poor
The Oil and Gas Regulatory Authority (Ogra) had proposed to increase the gas prices by up to 186% to meet the revenue shortfall being faced by the Sui Northern Gas Company Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL).
As a result of the ECC’s decision, the combined revenue shortfall of the two gas utilities will reduce from Rs152 billion to Rs58 billion, according to the Petroleum Division secretary.
This suggests that the gas consumers will pay an additional Rs94 billion in the ongoing fiscal year to gas utilities.
Pakistan’s gas reserves are depleting fast and a recent projection by the Petroleum Institute of Pakistan suggests that by 2030 the supply of gas will decrease from roughly 4 billion cubic feet (bcf) to only 2.4 bcf.
In contrast to this, the supply of LNG, which is twice the price of locally-produced gas, will increase from 1 bcf to 3.6 bcf to meet the shortfall.
Pakistan has one of the lowest prices of piped gas, which also led to its wastage. At present half of the piped gas is being used by the domestic consumers on the Sui Northern Gas Pipelines Limited (SNGPL) pipeline and 24% by the Sui Southern Gas Company (SSGC) consumers.
For FY2018-19, Ogra has determined Rs275 billion revenue requirements for SNGPL and Rs211 billion for SSGC. This includes Rs29.4 billion previous year’s shortfall of SNGPL.
Domestic sector
The ECC increased gas slabs from three to seven with an aim to pass on maximum burden on the upper middle and rich class of the country.
Against an earlier lowest slab of 100 mmcfd consumers, the government has decided to create two slabs. For up to 110 mmfcd slab, that covers 38% or 3.6 million of the total consumers, the government increased the gas prices by 10% to Rs121 per mmbtu. This will increase their monthly bill from Rs252 to Rs275.
For the second category of up to 100mmcfd consumers, there is 15% increase that will push their monthly bill from minimum Rs480 to Rs551. About 28% of total consumers or 2.63 million households fall in this category.
For the third category comprising up to 200 mmcfd consumers, the government has increased the gas prices by 20%. This category of consumers’ monthly bill will shoot up from Rs1,851 to minimum Rs2,216. About 19% of the total consumers or 1.74 million households fall under the slab.
The government has created a fourth slab of up to 300mmcfd consumers for 436,248 households and increased their prices by 25%. Their monthly bill will jump from Rs2,764 to minimum Rs3,449 – showing an additional burden of Rs685.
For the fifth category of up to 400mmcfd consumers – 6% of the total consumers or 524,391 households – the government has increased the gas prices by 30%. Their monthly bill will increase from the minimum Rs9,990 to Rs12,980 at least – an additional burden of Rs2,990, according to the Petroleum Division secretary.
For the sixth slab comprising consumers using 500mmcfd gas – which are 2% of the total consumers or 226,129 households – the government has increased the gas prices by 143%.
Their monthly bill jump from Rs12,482 to at least Rs30,339 per month. For the last category of consumers using more than 500 mmcfd, the government has increased the prices by 143%.
The monthly bill of this class will increase from Rs14,973 to minimum Rs36,402, showing an increase of Rs21,429. About 237,078 households fall in this category.
Federal cabinet defers hike in gas prices
Commercial and industrial sectors
The government has increased the gas prices for commercial consumers by 40%, including for special commercial connection like tandors (earthen oven). It increased the gas prices for old fertiliser plants by 50%, and for new units up to 40%. The decision will push the price of a 50 kilogram urea bag by Rs128.
For general industries and captive power plants, the government has increased the gas prices by 40%, increasing it from Rs600 per mmbtu to Rs780. However, registered manufacturers or exporters of textile, carpets, leather, sports and surgical goods will be exempted from the increase.
The government increased the gas prices for the power sector by 57% that will push the power generation cost up by 12%.
The gas sale price for the cement sector also increased from Rs750 to Rs975 per mmbtu, reflecting an increase of 30%. The CNG sector gas prices were also increased by 40% to Rs980 per mmbtu.
Bulk meter consumers will be charged at a flat rate of Rs780 per mmcfd.
By Shahbaz Rana
Published: September 17, 2018
41SHARES
SHARE TWEET EMAIL
The decision will hurt as many as 9.4 million domestic users. PHOTO: FILE
ISLAMABAD: The government on Monday increased natural gas prices by up to 143% to recover Rs94 billion from consumers, in effect slashing consumer subsidies that were a fiscal drag on the government’s budget.
The increase may make gas utility companies financially viable but will stoke inflation due to increase in the price of commodities.
The decision will hurt as many as 9.4 million domestic users – 3.6 million of them falling in the lowest income slab and another 2.63 million in the second lowest income group. Due to the increase in gas prices for the power sector, the electricity will become expensive by 12%.
The Economic Coordination Committee (ECC) of the cabinet allowed raise in the gas prices for domestic consumers in the range of 10% for the lowest slab consumers to 143% for the highest slab domestic consumers.
It also approved increasing gas prices for commercial and industrial consumers from 30% to 57% that will increase the prices of fertiliser, manufacturing units, electricity generation, cement and Compressed Natural Gas (CNG). But it has protected five export-oriented sectors from the increase.
The decision will take effect from the date of ratification of the ECC decision by the federal cabinet. Up to 143% increase in gas prices is expected to follow around 35% increase in electricity prices in the coming weeks.
High gas prices hurt nobody except the very poor
The Oil and Gas Regulatory Authority (Ogra) had proposed to increase the gas prices by up to 186% to meet the revenue shortfall being faced by the Sui Northern Gas Company Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL).
As a result of the ECC’s decision, the combined revenue shortfall of the two gas utilities will reduce from Rs152 billion to Rs58 billion, according to the Petroleum Division secretary.
This suggests that the gas consumers will pay an additional Rs94 billion in the ongoing fiscal year to gas utilities.
Pakistan’s gas reserves are depleting fast and a recent projection by the Petroleum Institute of Pakistan suggests that by 2030 the supply of gas will decrease from roughly 4 billion cubic feet (bcf) to only 2.4 bcf.
In contrast to this, the supply of LNG, which is twice the price of locally-produced gas, will increase from 1 bcf to 3.6 bcf to meet the shortfall.
Pakistan has one of the lowest prices of piped gas, which also led to its wastage. At present half of the piped gas is being used by the domestic consumers on the Sui Northern Gas Pipelines Limited (SNGPL) pipeline and 24% by the Sui Southern Gas Company (SSGC) consumers.
For FY2018-19, Ogra has determined Rs275 billion revenue requirements for SNGPL and Rs211 billion for SSGC. This includes Rs29.4 billion previous year’s shortfall of SNGPL.
Domestic sector
The ECC increased gas slabs from three to seven with an aim to pass on maximum burden on the upper middle and rich class of the country.
Against an earlier lowest slab of 100 mmcfd consumers, the government has decided to create two slabs. For up to 110 mmfcd slab, that covers 38% or 3.6 million of the total consumers, the government increased the gas prices by 10% to Rs121 per mmbtu. This will increase their monthly bill from Rs252 to Rs275.
For the second category of up to 100mmcfd consumers, there is 15% increase that will push their monthly bill from minimum Rs480 to Rs551. About 28% of total consumers or 2.63 million households fall in this category.
For the third category comprising up to 200 mmcfd consumers, the government has increased the gas prices by 20%. This category of consumers’ monthly bill will shoot up from Rs1,851 to minimum Rs2,216. About 19% of the total consumers or 1.74 million households fall under the slab.
The government has created a fourth slab of up to 300mmcfd consumers for 436,248 households and increased their prices by 25%. Their monthly bill will jump from Rs2,764 to minimum Rs3,449 – showing an additional burden of Rs685.
For the fifth category of up to 400mmcfd consumers – 6% of the total consumers or 524,391 households – the government has increased the gas prices by 30%. Their monthly bill will increase from the minimum Rs9,990 to Rs12,980 at least – an additional burden of Rs2,990, according to the Petroleum Division secretary.
For the sixth slab comprising consumers using 500mmcfd gas – which are 2% of the total consumers or 226,129 households – the government has increased the gas prices by 143%.
Their monthly bill jump from Rs12,482 to at least Rs30,339 per month. For the last category of consumers using more than 500 mmcfd, the government has increased the prices by 143%.
The monthly bill of this class will increase from Rs14,973 to minimum Rs36,402, showing an increase of Rs21,429. About 237,078 households fall in this category.
Federal cabinet defers hike in gas prices
Commercial and industrial sectors
The government has increased the gas prices for commercial consumers by 40%, including for special commercial connection like tandors (earthen oven). It increased the gas prices for old fertiliser plants by 50%, and for new units up to 40%. The decision will push the price of a 50 kilogram urea bag by Rs128.
For general industries and captive power plants, the government has increased the gas prices by 40%, increasing it from Rs600 per mmbtu to Rs780. However, registered manufacturers or exporters of textile, carpets, leather, sports and surgical goods will be exempted from the increase.
The government increased the gas prices for the power sector by 57% that will push the power generation cost up by 12%.
The gas sale price for the cement sector also increased from Rs750 to Rs975 per mmbtu, reflecting an increase of 30%. The CNG sector gas prices were also increased by 40% to Rs980 per mmbtu.
Bulk meter consumers will be charged at a flat rate of Rs780 per mmcfd.
niaz
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Don't know how the figure of Rs 630/ per million Btu was arrived at. For the benefit of forum members, let us do a ‘back of the envelope’ estimation of the cost of gas based upon imported LNG.
Qatar LNG price to Pakistan in 13.37% of Brent. The current price of Brent crude is hovering just under $70/bbl. This means LNG price to Pakistan is $9.36 (Say $10/-) per mm BTU. Assuming Rs 130 per USD makes the LNG price at Rs 130/- per mm BTU.
To this, we must add the transmission and distribution costs. I have no idea what these are in Pakistan, but in the US average transmission & distribution cost is about $4/- per mm BTU (about Rs 5/-). Assuming it to be roughly the same for Pakistan, translates into actual out of pocket cost for the imported LNG at Rs 180/- per mm BTU.
The above does not include the losses due to “ Stolen” gas. Let us add another Rs 20/- to compensate for theft. This gives us a total of Rs 200/- per million Btu as a realistic gas selling price based on full recovery of all costs.
In other words, regardless of variations according to the different grade consumers, GOP/ gas companies need to sell the imported gas at the average price of Rs 200/- per million BTU to avoid the net operating loss.
Kindly note that 'well-head' price for indigenous gas is normally set on a different basis in Pakistan, primarily because lower the selling prices, the less foreign exchange would be taken out of Pakistan by the foreign producing companies. However the rational basis, for setting selling prices must be the Import Parity.
Sir how come $10 equals Rs130/- ?
Same goes for another price comparison you made below the one that I quoted here.
pin gu
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Egypt Hikes Gas Price by 75%
The government statement published in the Official Gazette said that, effective Aug. 1, the price for consuming up to 30 cubic meters of gas had been set at 0.175 Egyptian pounds ($0.0098) per cubic meter, up from 0.100 pounds ($0.0056) .The price for consuming 30 to 60 cubic meters was set at 0.250 pounds ($0.014), up from 0.175 pounds ($0.0098), while consumption of more than 60 cubic meters was set at 0.300 pounds ($0.017) from 0.225 pounds.
https://financialtribune.com/articles/energy/90276/egypt-hikes-gas-price-by-75
1 MMBtu is equal to 1 million BTU (British Thermal Unit). Natural gas is measured in MMBtu's. 1 MMBtu = 28.263682 m3 of natural gas at defined temperature and pressure.
I think we have same price like Egypt .
Russia's Natural gas price according to indexmundi.com
Natural gas bloomberg.com
Currently, the US gas price is about $2.85 per MMBTU, a measure of energy content in fuel. This rises above $6 after factoring all the associated fees for shipping, liquefication and gasification, according to Gazprom estimates. This compares with about $5 per MMBTU in much of the European market, where Gazprom accounts for about a third of supply.
https://www.ft.com/content/352f4cac-6c7a-11e7-b9c7-15af748b60d0
The government statement published in the Official Gazette said that, effective Aug. 1, the price for consuming up to 30 cubic meters of gas had been set at 0.175 Egyptian pounds ($0.0098) per cubic meter, up from 0.100 pounds ($0.0056) .The price for consuming 30 to 60 cubic meters was set at 0.250 pounds ($0.014), up from 0.175 pounds ($0.0098), while consumption of more than 60 cubic meters was set at 0.300 pounds ($0.017) from 0.225 pounds.
https://financialtribune.com/articles/energy/90276/egypt-hikes-gas-price-by-75
1 MMBtu is equal to 1 million BTU (British Thermal Unit). Natural gas is measured in MMBtu's. 1 MMBtu = 28.263682 m3 of natural gas at defined temperature and pressure.
I think we have same price like Egypt .
Russia's Natural gas price according to indexmundi.com
Natural gas bloomberg.com
Currently, the US gas price is about $2.85 per MMBTU, a measure of energy content in fuel. This rises above $6 after factoring all the associated fees for shipping, liquefication and gasification, according to Gazprom estimates. This compares with about $5 per MMBTU in much of the European market, where Gazprom accounts for about a third of supply.
https://www.ft.com/content/352f4cac-6c7a-11e7-b9c7-15af748b60d0
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