A.Rafay
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ISLAMABAD: Natural gas price for all consumer categories is set to increase at the start of the new year 2013, as the Oil and Gas Regulatory Authority (OGRA) has recommended to raise prices by around Rs 31.12 per million British Thermal Units (mmBTU) for SNGPL and Rs.28.28 per mmBTU for SSGCL consumers, official sources informed on Saturday.
Net increase in gas tariff for SNGPL has been worked out to be 9.87 percent, while for SSGC consumers, the increase has been worked out at around 6.14 percent, they added. OGRA has submitted a summary to the Ministry of Petroleum and Natural Resources whereby it has been recommended an increase of Rs 31.12 per mmBTU in gas tariff for Sui Northern Gas Pipelines Limited (SNGPL) consumers and Rs 28.28 per mmBTU for consumers of Sui Southern Gas Company Limited (SSGC) for the period January 1 to July 1, 2013.
Summery submitted by OGRA stated that The authority after in depth analysis of the estimates and examined the petitions of SNGPL and SSGC in light of policy frame work and relevant rules so that only prudent, cost effective and economically efficient expenditure should be allowed.
OGRA said that the net increase in gas tariff for SNGPL has worked out to be 9.87 percent, while for SSGC, the increase has been worked out to be around 6.14 percent.
The OGRA summary said that factors needed utmost consideration of the FG, in order to rationalise the consumer gas prices in public interest. The document added that the SNGPL has sought an increase of Rs 67.66 per mmBTU in the average prescribed price with effect from January 1, 2013.
The said increase is primarily owing to increase in well-head gas price due to devaluation of rupee parity against dollar, increase in Transmission and Distribution (T&D) cost along with operating cost of new sub-region Vehari, OGRA observed.
The SNGPL had requested the authority for the allowing it Rs 9.4 billion additional expenditure on account of distribution, development, new connections, information technology and Uncounted for Gas (UFG) reduction plan for the period. The company had also requested OGRA for Rs2 Billion on account of Human Resource (HR) cost in addition to above increase.
The authority in the summary has asked the petroleum ministry for serious consideration of the factors as they need utmost consideration of federal government, in order to rationalize the consumer gas prices in public interest, the OGRA summary said.
LNG projects and LNG Pipeline Infrastructure: The SSGC in its petition to Ogra has claimed that the capital expenditure of Rs1.064 billion and revenue expenditure of Rs127 million as part of revenue requirement for the said year.
Whereas, Rs198 million has been allowed on account of Natural Gas Efficiency Program (NGEP) as requested by SSGC. Fixation of Unaccounted for Gas level at 7 percent as requested by the SSGC, OGRA noted that UFG disallowance has been calculated at 7 percent in line with the interim stay granted by the Sindh High Court.
The revenue shortfall of financial year 2011-12, the SSGC requested to include the revenue shortfall arising from the determination of Review of Estimated Revenue Requirement (RERR) of 2011-12 as part of the revenue requirement for the current calculations for gas pricing.
The petitioner has submitted that gas development surcharge to the extent of Rs1.66 billion is available in FY 2011-12 to adjust the shortfall for the same period. In view of above, a provisional amount of Rs2.00 billion has been included in tariff calculation for said year.
OGRA has also stated in the summary to the petroleum ministry that the difference if any would be adjusted in the forthcoming determinations of gas pricing for the SSGC and the SNGPL. OGRA has also praised the efforts by SNGPL to control line losses, however, the authority has allowed Rs 1.5 billion on account of Unaccounted For Gas (UFG) reduction plan for the said year as requested by SNGPL, while appreciating the SNGPLs UFG control related activities and provided budgetary support to control this menace.
Daily Times - Leading News Resource of Pakistan
Net increase in gas tariff for SNGPL has been worked out to be 9.87 percent, while for SSGC consumers, the increase has been worked out at around 6.14 percent, they added. OGRA has submitted a summary to the Ministry of Petroleum and Natural Resources whereby it has been recommended an increase of Rs 31.12 per mmBTU in gas tariff for Sui Northern Gas Pipelines Limited (SNGPL) consumers and Rs 28.28 per mmBTU for consumers of Sui Southern Gas Company Limited (SSGC) for the period January 1 to July 1, 2013.
Summery submitted by OGRA stated that The authority after in depth analysis of the estimates and examined the petitions of SNGPL and SSGC in light of policy frame work and relevant rules so that only prudent, cost effective and economically efficient expenditure should be allowed.
OGRA said that the net increase in gas tariff for SNGPL has worked out to be 9.87 percent, while for SSGC, the increase has been worked out to be around 6.14 percent.
The OGRA summary said that factors needed utmost consideration of the FG, in order to rationalise the consumer gas prices in public interest. The document added that the SNGPL has sought an increase of Rs 67.66 per mmBTU in the average prescribed price with effect from January 1, 2013.
The said increase is primarily owing to increase in well-head gas price due to devaluation of rupee parity against dollar, increase in Transmission and Distribution (T&D) cost along with operating cost of new sub-region Vehari, OGRA observed.
The SNGPL had requested the authority for the allowing it Rs 9.4 billion additional expenditure on account of distribution, development, new connections, information technology and Uncounted for Gas (UFG) reduction plan for the period. The company had also requested OGRA for Rs2 Billion on account of Human Resource (HR) cost in addition to above increase.
The authority in the summary has asked the petroleum ministry for serious consideration of the factors as they need utmost consideration of federal government, in order to rationalize the consumer gas prices in public interest, the OGRA summary said.
LNG projects and LNG Pipeline Infrastructure: The SSGC in its petition to Ogra has claimed that the capital expenditure of Rs1.064 billion and revenue expenditure of Rs127 million as part of revenue requirement for the said year.
Whereas, Rs198 million has been allowed on account of Natural Gas Efficiency Program (NGEP) as requested by SSGC. Fixation of Unaccounted for Gas level at 7 percent as requested by the SSGC, OGRA noted that UFG disallowance has been calculated at 7 percent in line with the interim stay granted by the Sindh High Court.
The revenue shortfall of financial year 2011-12, the SSGC requested to include the revenue shortfall arising from the determination of Review of Estimated Revenue Requirement (RERR) of 2011-12 as part of the revenue requirement for the current calculations for gas pricing.
The petitioner has submitted that gas development surcharge to the extent of Rs1.66 billion is available in FY 2011-12 to adjust the shortfall for the same period. In view of above, a provisional amount of Rs2.00 billion has been included in tariff calculation for said year.
OGRA has also stated in the summary to the petroleum ministry that the difference if any would be adjusted in the forthcoming determinations of gas pricing for the SSGC and the SNGPL. OGRA has also praised the efforts by SNGPL to control line losses, however, the authority has allowed Rs 1.5 billion on account of Unaccounted For Gas (UFG) reduction plan for the said year as requested by SNGPL, while appreciating the SNGPLs UFG control related activities and provided budgetary support to control this menace.
Daily Times - Leading News Resource of Pakistan
