ISLAMABAD-The Petroleum Division on Saturday admitted that Economic Coordination Committee (ECC) of the Cabinet has recently increased the gas price for different sectors including fertilizer, power, cement and CNG consumers excluding domestic consumers and Tandoors.

In first summary by the Petroleum Division for annual gas price revision, the ECC decided to keep the gas tariffs unaffected for domestic and Roti Tandoors from July 1, 2019 levels. 

It was also decided that the applicable GIDC would be eliminated for all other customers in light of order of Supreme Court and the prices for those previously subject to GIDC would be increased by one-third of what would have been applicable GIDC. Following table will lead to actual figures as proposed.

The Petroleum Division stated that government has not increased gas prices for commercial consumers. Gas price for commercial consumers would remain same at Rs1283 per MMBTU. The government has proposed to increase gas price for fertilizer (feed) by Rs2 to Rs302 per MMBTU and Rs2 to Rs1023 per MMBTU for fertilizer fuel. Meanwhile, the government has recommended enhancing the gas price for power sector to Rs857 per MMBTU from existing Rs824 per MMBTU.

According to the Petroleum Division, the government has suggested to increase gas price to Rs1054 per MMBTU from Rs1021 per MMBTU for general industry. Similarly, it has recommended increasing gas price for captive general industry to Rs1087 per MMBTU from Rs1021 per MMBTU. The government has suggested increasing the gas price for textile process (export) from Rs786 per MMBTU to Rs819 per MMBTU and to Rs852 per MMBTU from Rs786 per MMBTU for the captive power textile (exports). Similarly, the government has suggested enhancing gas price for CNG (Region-I-KPK, (Balochistan & Potohar) from Rs1283 per MMBTU to Rs1371 per MMBTU and for CNG (Region-II-Sindh and Punjab) it recommended to increase gas prices from Rs1283 per MMBTU to Rs1350 per MMBTU.

The ECC has given approval subject to the approval of the federal cabinet. Second summary pertained to supply of gas to five export oriented industrial sectors in the SSGC’s system; which was approved by ECC, whereby blend of available local gas with LNG would be supplied to these industries at the rate of Rs. 930/MMBTU for five months of winter season till end of February 2021 in view of drastic drop in production of indigenous gas in Sindh. After February 2021, the supply of local gas will resume as per existing practice when the demand from domestic sector get normalized. For comparison, five export sector industries in Punjab are being provided LNG at the rate of USD 6.5/MMBTU (approx. Rs1080) as per agreement.

The government has agreed and approved upon this formula to protect the export-oriented industry in SSGC system by supplementing the gas supply with LNG during winter after discussion with the industry.