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Govt Drops Sui Gas Bomb on Citizens to Get IMF Loan

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Legal Editorial Desk
Govt Drops Sui Gas Bomb on Citizens to Get IMF Loan
The Oil and Gas Regulatory Authority (OGRA) formally notified a massive increase in gas prices late Wednesday night for domestic consumers and industries, including export-oriented sectors, captive power plants, CNG and IPPs, and commercial sectors. As approved by the Economic Coordination Committee (ECC) of the Federal Cabinet on Monday, OGRA has notified a hefty increase in gas prices for residential and other categories of consumers which would generate a revenue of Rs. 310 billion to fulfill yet another requirement of the International Monetary Fund (IMF). The tariff will be standardized across the country, applying to both the SNGPL and SSGCL networks. Gas consumers have been categorized as ‘protected’ & ‘non-protected’. Non-protected consumers will pay a fixed charge of Rs. 500 while protected consumers will pay Rs. 50 in their bills. The gas price for protective domestic consumers Up to 0.25hm3 would be Rs. 121 Rs MMBTU, Rs. 150 up to 0.5 hm3, Rs. 200 up to 0.6 hm3, and Rs. 250 up to 0.9 hm3. Meanwhile, the gas price for non-protective domestic consumers would be Rs. 400 from Rs. 300 upto 1hm3, Rs. 600 from Rs. 500 upto 1.5 hm3, Rs. 800 from Rs. 553 upto 2 hm3, Rs. 1,100 from Rs. 738 upto 3 hm3, Rs. 2,000 from Rs. 1. 107 up to 4 hm3 and Rs. 3,100 from Rs. 1,460 for above 4 hm3. Here’s the full breakdown for the sale price and minimum charges as notified by OGRA:   The tariff for captive gas use in this category will be charged as per the captive power category i.e. Rs. 1,200 per MMBTU. All off-takes at a flat rate of Rs. 1,600 per MMBTU while minimum charges will be Rs. 3,900 per month.   All off-takes at a flat rate of Rs. 1,650 per MMBTU and minimum charges of Rs. 6,415 per month have been implemented for establishments registered as commercial units with local authorities or dealing in consumer items for direct commercial sale cafes, milk shops, tea stalls, canteens, barber shops, laundries, hotels including the hotel industry, malls, places of entertainment like cinemas, clubs, theaters and private offices, corporate firms, etc. All off-takes for this sector are subject to a flat rate of Rs. 1,650 per MMBTU and minimum charges of Rs. 6,415 per month. Businesses in this segment will pay a flat rate of Rs. 1,200 per MMBTU along with minimum charges of Rs. 35,540 per month for consumers engaged in the processing of industrial raw material into value-added finished products irrespective of the volume of gas consumed but excluding such industries for which a separate rate has been prescribed. Industrial undertaking/unit carrying out the activity of power production (with or without co-generation) for self-consumption and/or sale of surplus power to DISCOs or bulk power consumers will pay a flat rate of Rs. 1,200 per MMBTU with minimum charges of Rs. 36,653 per month. Pak-American Fertilizer Company Limited All of-takes at a flat rate of Pak-Arab Fertilizer Limited, Multan All off-takes at a flat rate of Pak-China Fertilizer Limited, Haripur All off-takes at a flat rate of Hazara Phosphate Fertilizer Plant Limited, Haripur All off-takes at a flat rate of Engro Fertilizer Company Limited All off-takes at a flat rate of Fauji Fertilizer Bin Qasim Limited (on SSGCL system) All off-takes at a flat rate of All off-takes at a flat rate of Rs. 1,050 per MMBTU and minimum charges of Rs. 28,898 per month.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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