OGRA recommends 74% increase in sui gas prices

[ghazi52]

,.,.,.

OGRA recommends 74% increase in sui gas prices​

SNGPL allowed to increase rate by 74.42%, SSGC by 67.75%

Zaigham Naqvi
January 11, 2023

ISLAMABAD: At a time when the people of the country are finding it hard to make ends meet due to skyrocketing inflation, the Oil and Gas Regulatory Authority (Ogra) is seeking to drop a new bomb as it recommended an increase of up to 74% in the natural gas price from July 1.

According to the recommendation, the Sui Northern Gas Pipelines Ltd (SNGPL) would be allowed to increase gas prices by up to 74.42% and the Sui Southern Gas Company (SSGC) by 67.75%.

Ogra’s decision will be implemented after the approval of the federal government. If the federal government does not approve it within 40 days, the decision will be implemented automatically.

According to Ogra’s decision, an increase in gas price of Rs406.28 per mmbtu has been approved for the SNGPL and an increase of Rs469.28 per mmbtu for the SSGC.

The current average price of the SNGPL is Rs545.89 per mmbtu while after the implementation of Ogra’s decision, the new price would be Rs952.17 per mmbtu.

Similarly, the current price of the SSGC is Rs692.63 per mmbtu while the new price would be Rs1,161.91 per mmbtu.
Ogra’s decision will be applied after the approval of the federal government and if the Centre does not approve it within 40 days, the decision will be implemented automatically.

OGRA recommends 74% increase in sui gas prices | The Express Tribune

Oil and Gas Regulatory Authority (Ogra) is seeking to drop a new bomb as it recommended an increase of up to 74% in the natural gas price from July 1

tribune.com.pk

 

[PDF]

Ogra’s decision will be implemented after the approval of the federal government. If the federal government does not approve it within 40 days, the decision will be implemented automatically.

So federal govt can not reject the raise?

 

[HAIDER]

So federal govt can not reject the raise?

Seem IMF terms for the 9th review. 10 and 11th due. More to come.

 

[Musalman]

The change in Law was done by the PTI government. The best thing they did in their 3 years term. Yes now govenrment can not reject it.
Its sad we spend lavishly but when IMF impose restriction, which is for our own benefit. We call our government a sell off.
In my view, first time if we full fill all IMF conditions, that day our economy will revive. Otherwise we are in bad shape.

 

[HAIDER]

The change in Law was done by the PTI government. The best thing they did in their 3 years term. Yes now govenrment can not reject it.
Its sad we spend lavishly but when IMF impose restriction, which is for our own benefit. We call our government a sell off.
In my view, first time if we full fill all IMF conditions, that day our economy will revive. Otherwise we are in bad shape.

But poor people will die. In Pakistan middle class/economy movers are evaporated in the thin air of extreme inflation. The average salary is 30,000 to 40,000 ... can you survive?

 

[SIPRA]

But poor people will die. In Pakistan middle class/economy movers are evaporated in the thin air of extreme inflation. The average salary is 30,000 to 40,000 ... can you survive?

Undeniable destiny of slaves.

 

[Musalman]

But poor people will die. In Pakistan middle class/economy movers are evaporated in the thin air of extreme inflation. The average salary is 30,000 to 40,000 ... can you survive?

Poor people in Pakistan are getting Natural gas at Rs 110 per MMBtu. Every consumer get benefit of this slab . Cost of buying that gas from Qatar and other E&P company is around Rs 4000 per MMBTU. Unless we do something about this we are not getting out of this bankrupcy.

 

[HAIDER]

Poor people in Pakistan are getting Natural gas at Rs 110 per MMBtu. Every consumer get benefit of this slab . Cost of buying that gas from Qatar and other E&P company is around Rs 4000 per MMBTU. Unless we do something about this we are not getting out of this bankrupcy.

ok, PTI era .....

Govt plans new slab for poor gas consumers​

Khaleeq Kiani Published September 17, 2018




30
ISLAMABAD: Amid political pressure, the government is likely to create a new slab for poor domestic consumers with minimal impact of proposed 46 per cent increase in gas tariff.
The Economic Coordination Committee (ECC) of the cabinet will meet on Monday (today) to consider the consequences of creating four domestic slabs from the existing three.
The gas price hike has remained part of discussions of all the ECC meeting held since the present government took over last month.
The ECC could also take up for discussion a report of the auditor general of Pakistan on payment of Rs480 billion against circular debt in 2013 by the PML-N government, besides the issue of recent surge in the prices of liquefied petroleum gas.
Informed sources said two teams of the Oil and Gas Regulatory Authority (Ogra) and the petroleum division and their subordinate gas utilities would brief the ECC meeting on distribution of domestic consumers into four slabs instead of three. This will be done by carving out a lifeline consumer category with monthly consumption of 50 cubic metres that would get limited increase in rates.
At present domestic consumers have three categories — those consuming 100 cubic metres per month consumption are charged at Rs110 per mmbtu (million British thermal unit), 300 cubic metres at Rs220 and 600 cubic metres and above charged at Rs600 per mmbtu.
Ogra had determined an average 46pc increase in gas price with a total revenue impact of about Rs200 billion, including the highest 186pc increase for first two slabs of domestic consumers, to bring the tariff closer to the actual cost of gas. The government has the powers under the law to switch price increase among various consumer groups and slabs without changing the overall 46pc increase.
A summary moved by the petroleum division about gas prices on the basis of Ogra determination has proposed 186pc increase in prices for the two lowest domestic consumer slabs. It has proposed an increase in the monthly price of the first slab of 100 cubic metres from Rs110 to Rs315 per mmbtu and from Rs220 to Rs629 per unit for the slab of up to 300 cubic metres. For the third domestic slab of above 300 cubic metres, fertiliser fuel, general industry and captive industry, the summary has worked out a 30pc increase in the price from Rs600 to Rs780 per mmbtu.
For old fertiliser, the tariff has been proposed to go up by 30pc from Rs123 to Rs160 per mmbtu, for power plants by 30pc from Rs400 to Rs520, for cement plants from Rs750 to Rs975 and for CNG and commercial consumers by 30pc to Rs911 from Rs700 per mmbtu.
The petroleum division said the regulator had worked out a 30pc increase in gas sale rates for all consumers, except the domestic sector where an increase of 186pc was proposed. Even with this increase, the proposed tariff depicts a 50pc cost recovery for the first slab and 100pc for the second slab.
Interestingly, the increase in gas prices for the SSGC is proposed relatively on the lower side — between 14pc and 168pc — but given the government policy of uniform gas tariff across the country, the SNGPL rates of 30pc to 186pc have to be followed, according to the petroleum division’s summary.
Published in Dawn, September 17th, 2018

 

[Catalystic]

Go back to burning wood, then run out of wood, then import wood?

 

[One_Nation]

Go back to burning wood, then run out of wood, then import wood?

Burn wood and grow it too for future use. Human consumption of resources should be different from animals.

 

[Musalman]

Go back to burning wood, then run out of wood, then import wood?

Cow dung will be better

 

[PradoTLC]

,.,.,.

OGRA recommends 74% increase in sui gas prices​

SNGPL allowed to increase rate by 74.42%, SSGC by 67.75%

Zaigham Naqvi
January 11, 2023

ISLAMABAD: At a time when the people of the country are finding it hard to make ends meet due to skyrocketing inflation, the Oil and Gas Regulatory Authority (Ogra) is seeking to drop a new bomb as it recommended an increase of up to 74% in the natural gas price from July 1.

According to the recommendation, the Sui Northern Gas Pipelines Ltd (SNGPL) would be allowed to increase gas prices by up to 74.42% and the Sui Southern Gas Company (SSGC) by 67.75%.

Ogra’s decision will be implemented after the approval of the federal government. If the federal government does not approve it within 40 days, the decision will be implemented automatically.

According to Ogra’s decision, an increase in gas price of Rs406.28 per mmbtu has been approved for the SNGPL and an increase of Rs469.28 per mmbtu for the SSGC.

The current average price of the SNGPL is Rs545.89 per mmbtu while after the implementation of Ogra’s decision, the new price would be Rs952.17 per mmbtu.

Similarly, the current price of the SSGC is Rs692.63 per mmbtu while the new price would be Rs1,161.91 per mmbtu.
Ogra’s decision will be applied after the approval of the federal government and if the Centre does not approve it within 40 days, the decision will be implemented automatically.

OGRA recommends 74% increase in sui gas prices | The Express Tribune

Oil and Gas Regulatory Authority (Ogra) is seeking to drop a new bomb as it recommended an increase of up to 74% in the natural gas price from July 1

tribune.com.pk

another gift from imported gov...

 

[Musalman]

another gift from imported gov...

Ok we first need to understand what is going on before making these statements

Suis are working on formula which is as follows:

Cost of wellhead + All operating costs + Return on their Assets = Revenue Requirement

You divide it by volume you get prescribed prices.

This is what OGRA have given in the decision.

But this is not what companies charge to you.

Based on these prescribed Prices OGRA send its decision to Federal Government. Who decides what Sales Prices should be charged to customers.

For past 8 -9 years Federal Government is not increasing the Sales or Consumers Prices.

Meaning if the prescribed prices are Rs 800 per mmbtu Federal Government is giving consumers prices to Companies at around Rs 450 per MMbtu

Companies are accumulating the balance as receivable from GOP. Since they have no money to pay to their supplier they are stopping payments of equal amount to OGDCL, PPL etc.

This my friend is the CIRCULAR DEBT.

Now last year PTI government made an amendment in the law. As per this amendment Prescribed Price can not be less than Consumer Prices.

Now government has to pass through past accumulation and this year increase to consumers. Not because of the so called "Imported government" but because of the amendment done by the PTI government. Which in my view is the best thing they did.

WHY

because in future it will stop the circular debt which is actually making us bankrupt.

 

[Dalit]

You reap what you sow. Get ready for an economic onslaught.

 

[villageidiot]

Go back to burning wood, then run out of wood, then import wood?

Burn wood and grow it too for future use. Human consumption of resources should be different from animals.

Cow dung will be better

While you're at it, get rid of tractors and tube wells too. Those use fuel as well. Also get rid of fuel guzzling motor vehicles and switch back to khoti rehri. You can use the khoti's refuse as manure and get rid of synthetic fertilizer as well.

But don't stop the baby factories. Lest we come up short in manpower when ghazwa-e-hind rolls around.

@SIPRA