Islamabad-Petroleum Division has proposed an increase of 300pc in the gas meter rent for domestic consumers and hike of up to 15pc in gas prices for various categories of consumers. In a summary moved to the ECC the Petroleum division has proposed to increase the meter rent for domestic consumers from Rs20 per month to Rs80 per month, official documents reveals. The price of Rs20 as a meter rent was established in 1997 and the domestic gas consumers used to pay Rs240 annually for meter rent which has now been increase to Rs960 per year. The decision if approved by the ECC will have an impact of Rs34b on the gas consumers. Official source told The Nation that the summary was on the ECC agenda for Monday meeting, however it was deferred due to the ongoing wheat crises in the country.

In its summary the petroleum division has proposed 5 percent increase in all domestic and other categories except power sector, Zero-rated general industry and their captive power, captive power other than zero rated, CNG, Fertilizer fuel at RLNG price. It was proposed to increase gas tariff for power sector by 12 percent. All zero-rated general industry and their captive power at $6.5 per MMBTU(Rs 1000 MBTU), captive power other than zero rated, CNG 15 percent increase. Fertilizer fuel at RLNG price Rs1672 per MMBTU being current price of LNG. Minimum billing volume for domestic and special commercial consumers (Roti Tandoors) may be revised from 40 cm per month to 50 cm per month for which the bill against gas charges will be Rs 220 per month.

Minimum monthly charges will be determined by OGRA considering consumption of 140 cm per month for bulk domestic, commercial sector, ice factories, and 1000 cm per month for other sector using average GCV of system gas in the country.The prices approved for consumers of SNGPL and SSGCL will also be made applicable for Fertilizer and Power sector consumers to whom gas is supplied directly from fields by

To meet the revenue requirement of the gas distribution companies, in December last OGRA had recommended an increase of up to 214 percent in gas prices for various categories of gas consumers. The authority had determined the revised estimated revenue requirement for fiscal 2019-20 in respect of SNGPL and SSGCL as Rs 274.2 billion and Rs 282.9 billion respectively. The total proposed burden of the increase of gas prices on the consumers of both the companies were around Rs 567 billion.

Whereas the present sectoral gas sale prices could generate total revenues of Rs227.9 billion and Rs272.9 billion for SNGPL and SSGCL resulting in a projected revenue shortfall of Rs30.8 billion and 2.9 billion respectively. However, instead of Rs567 billion, the petroleum division has revised the gas prices in the manner which will generate a total revenue of Rs 534.1 billion.

The decision which will take effect from January 2020 will help both Karachi-based Sui Southern Gas Company Limited (SSGC) and Lahore-based Sui Northern Gas Pipeline Limited (SNGPL) to collect around Rs34 billion from gas consumers during next six months (January 1st to June 30).