ISLAMABAD: With a 47 percent expansion in normal recommended gas value, the Oil and Gas Regulatory Authority (Ogra) on Friday mentioned the legislature to raise rates for residential customers by up to 205pc with impact from July 1 to keep the gas organizations above water.
In two separate judgments sent to the administration, Ogra permitted about 47pc or Rs237 per unit (million British warm unit) increment in the endorsed cost of Sui Northern Gas Pipelines Limited (SNGPL) to Rs738 from Rs501. It said the organization’s unaccounted for gas (UFG) misfortunes remained at about 11pc.
Moreover, the controller permitted 28pc or Rs160 per unit increment in the endorsed cost of Sui Southern Gas Company Limited (SSGCL) to Rs738 from Rs578. SSGCL’s UFG misfortunes remained at an astounding 16pc, Ogra said.
Increment is one of earlier activities under concurrence with IMF for $6bn bailout bundle
The expansion in gas costs is one of the earlier activities of the as of late finished up concurrence with the International Monetary Fund (IMF) for a $6 billion bailout bundle.
Ogra said the fundamental purpose behind increment in the recommended gas cost was the expense of gas, principally because of the present conversion standard of Rs150 against a dollar. It likewise permitted about 20pc of earlier year’s income shortage of SNGPL conveyed forward to the following year’s value change. The joined effect of the expansion in the endorsed cost of the two organizations for recuperation from purchasers has been assessed at Rs60bn.
As a major aspect of legitimization of tax structure, Ogra prescribed to the legislature to build rates in a way that initial two sections of residential and extraordinary business customers should pay in any event half of the normal expense of gas that were over-sponsored at present. The third chunk (100-200 cubic meters) ought to be charged 75pc of the normal expense of administration, the fourth section 100pc and the top classification (more than 300 cubic meters) 150pc.
In doing as such, the controller worked out an expansion of 205pc for the primary (life saver) section devouring under 50 cubic meters for every month to Rs369 per MMBTU from Rs121. The month to month bill of this class (about 18pc of all out shoppers) will increment by 188pc to Rs789 from Rs274.
The rate for the second local piece (50-100 cubic meters) has been proposed at Rs369, rather than Rs127 per MMBTU, up by 191pc. The month to month bill of this classification of 29pc shoppers will increment by 183pc to Rs1,555 from Rs550.
The controller worked out the rate for shoppers utilizing 100-200 cubic meters for each month at Rs553 per MMBTU, rather than Rs264, an expansion of 110pc. The month to month bill of this classification of 32pc customers will increment by 74pc to Rs3,854 from Rs2,215.
The following section of 201-300 cubic meters for each month has been proposed at Rs738 per MMBTU, rather than Rs275, demonstrating an expansion of 168pc. The month to month bill of this classification will increment by 101pc to Rs6,918 from Rs3,449. About 12pc customers fall in this classification.
Ogra worked out an expansion of 42pc for customers utilizing 300-400 cubic meters for every month to Rs1,107 per MMBTU from Rs780. Interestingly, the controller worked a decrease of 24pc in existing rates of buyers utilizing in excess of 400 cubic meters for each month to Rs1,107 per MMBTU from Rs1,460.
The controller said the Lahore-based SNGPL had looked for 144pc (Rs723 per MMBTU) increment in the normal endorsed cost for its shoppers spread over Punjab and Khyber Pakhtunkhwa, yet was permitted “just 47pc (Rs237 per unit) increment” for the following financial year (2019-20).
It said the Karachi-based SSGCL had looked for an expansion of Rs176 per unit (30pc) in its normal endorsed cost, yet was permitted “just Rs160 per unit (28pc)”. The organization is providing petroleum gas to buyers in Sindh and Balochistan.
Ogra said it had proposed past one section advantage to buyers to limit the value sway, including that the remaining unabsorbed income setback controlled by the controller would be recovered from the remainder of customer classes no matter how you look at it. Likewise, the SNGPL and SSGCL would charge 31pc and 20pc, separately, higher rates to all mass buyers, including general modern, zero-evaluated, manure and power parts and CNG stations.
Under the law, the controller is required to advance its assurance to the administration most recent by May 20 and Nov 20 consistently. The legislature is required under the law to look for any change, in the event that it so consider, to the proposed increment for different customer classes inside 40 days to Ogra for warning with impact from July 1 and Jan 1, yet without influencing the generally decided incomes. The gas costs are changed two times every year.
The Pakistan Tehreek-I-Insaf government has just climbed gas costs by up to 143 percent amid the continuous money related year — September 2018. Insiders said a noteworthy thought for higher gas rates was to decrease misfortunes in the open division substances as required under the IMF bailout bundle.