ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has asked the government to apply uniform rates of gas to all consumers irrespective ...
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has asked the government to apply uniform rates of gas to all consumers irrespective of categories and sectors to ensure recovery of real price of gas and gas sectors. The revolving loan can be eliminated.
According to the Dawn newspaper, if the federal government accepts the regulator's advice to meet the needs of gas revenue, then OGRA will determine the use of domestic and special commercial sectors such as ovens in two different ways. Rates for consumers in the above categories will increase by more than 600% in July.
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OGRA last week expressed its commitment to the revenue requirements of Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited, stating that all categories of consumers should at least consider the current cost of alternative or alternative energy sources. Considering the average cost of the service should be paid, there will be no reason to meet the revenue requirement, it will provide equal opportunities to all concerned and avoid the situation of revenue shortfall. Will be able
In its commitment, OGRA has also sent the prices fixed by category for the financial year 23-2022. Also recommended.
Thus, in the lowest slab, domestic consumers (lifeline consumers) will face an increase of about 606% in gas prices as against the current monthly rate of Rs. 121 per unit for consumption up to 0.5 cubic meters.
The second domestic slab (up to one cubic meter per month), which is currently paying Rs. The next slab (up to three cubic meters) will see an increase of 16% at the current rate of Rs. 738 per unit.
Read also: OGRA raises gas prices by 45%
On the other hand, the next two slabs of four cubic meters and above will get relief as their current rates are Rs. 1,107 and Rs.
Similarly, if OGRA's advice is heeded, the special commercial consumers and Roti Tandoor will face an increase of 288 to 610 per cent against the current rates of Rs 220 and Rs 110 per unit respectively.
However, this suggestion does not require restriction as the federal government can still ask the regulator to change the different gas prices for different consumer categories based on socio-political considerations but it must be ensured that If there is no change in the overall average price set by OGRA, then the government will have to shift the price difference to other categories of consumers like power sector, cement and commercial sector.
The federal government has the power to advise OGRA to fix different rates of gas tariff for different consumers without changing the overall increase in the average price fixed by the regulator, however this is mandatory under the amended OGRA law. That the regulator will automatically apply in the absence of any government decision within 40 days of setting the tariff.
The regulator reminded that despite its commitment in the past, the federal government had allowed inadequate revision in gas sales rates which resulted in reduction in total revenue requirements of gas companies last year, only SN. In the case of GPL, last year's shortfall is about Rs 265 billion.
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OGRA, along with its latest commitment, has already referred the matter to the government for an appropriate policy decision in a previous decision, allowing the Ministry of Energy to amend the OGRA Act without affecting the revenue requirements of the needle companies. The process of determining the future and the method of direct payment should be formulated.
OGRA warned the government that if it tried to meet last year's revenue shortfall set by the regulator, it would face dire consequences, adding that the government had failed to meet last year's demand. Any inclusion of K-shortfall, after the latest amendments, would not only significantly increase prices for all categories of consumers but also lead to litigation in various courts, OGRA advised the government to consider it appropriate. The said legislation should be used to calculate future price adjustments on an expected basis only.
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