Monday, 27 January, 2025 26 Rajabul Murajjab 1446
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Rs 50.00 | Vol XV No 202 40 Pages Islamabad Edition
ECC APPROVES GAS TARIFF HIKE FOR CAPTIVE POWER PLANTS AS DOMESTIC CONSUMERS SPARED PROFIT
stAff report
An Iranian worker stands in front of a section of a pipeline after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. The two leaders jointly unveiled a plaque before shaking hands and offering prayers for the successful conclusion of the project, which involves the laying of a 780 kilometre (485 mile) section of the pipeline on the Pakistani side, expected to cost some $1.5 billion. The Economic Coordination Committee (ECC) approved an increase in gas tariffs for captive power plants while keeping rates for domestic consumers unchanged. The decision was taken during a meeting on Saturday, chaired by Federal Minister for Finance Mohammad Aurangzeb. The gas tariff for captive power plants has been raised from Rs. 3,000 to Rs. 3,500 per MMBTU, effective for the fiscal year 202425. This measure aims to generate the required revenue for the gas sector, according to an official statement from the Ministry of Finance. The ECC rejected a proposal to increase tariffs for domestic consumers, citing concerns about the additional financial burden on households. The committee also instructed the Petroleum Division to implement a grid transition levy on captive power plants to enhance energy sector performance. The meeting reviewed a summary submitted by the Petroleum Division, proposing revisions to gas tariffs for industry and certain domestic slabs.
OGRA notifies gas price hike for captive gas plans; retains rates for other consumers ISLAMABAD
AhmAd AhmAdAni
Following the federal government’s advice, Oil and Gas Regulatory Authority (OGRA) has notified a revision in the gas sale price exclusively for the General Industry (Captive) category, effective February 1, 2025. According to OGRA, the federal government, while responding to the OGRA’s determinations of SNGPL and SSGCL’s Review of estimated revenue requirement for FY 2024-25, has issued advice on gas sale prices. Following the government’s advice, effective February 1, 2025, the gas sale price for General Industry (Captive) has been revised from Rs. 3,000/MMBTU to Rs. 3,500/MMBTU. However, prices for all other consumer categories, including Domestic, Special Roti Tandoor, General Industry (Process), Commercial, CNG, Cement, Fertilizer, and Power, remain unchanged. This revision was officially published in the official gazette and is also available on OGRA’s website. Earlier, OGRA had recom-
Attendees included Petroleum Minister Musadik Masood Malik, Power Minister Sardar Awais Ahmed Khan Leghari, and senior officials. The decision comes after weeks of opposition from industrialists and exporters, who argued that higher utility costs could hurt small and medium enterprises (SMEs). Meanwhile, the Oil & Gas Regulatory Authority
mended a significant gas price hike to the federal government to recover Rs. 847.33 billion during the current fiscal year and address the growing circular debt in the gas sector. The regulator proposed an increase of Rs. 142.45 per MMBTU for Sui Northern Gas Pipelines Limited (SNGPL) consumers and Rs. 361 per MMBTU for Sui Southern Gas Company Limited (SSGCL) consumers. The recommendations outlined a flat rate of Rs. 1,778.35 per MMBTU for SNGPL consumers, up from the current Rs. 1,635.90, and Rs. 1,762.51 for SSGCL consumers, up from Rs. 1,401.25. These adjustments equate to an 8.71 % increase for SNGPL consumers and a 25.78 % hike for SSGCL consumers. Under the amended OGRA law, the federal government is required to issue category-wise consumer rates without altering the overall revenue requirement calculated by the regulator. Despite OGRA’s proposal, the government has opted to maintain existing rates for most consumer categories while implementing a targeted increase for the captive sector.
(OGRA) recently recommended a 26% gas price hike to generate Rs. 847.33 billion during the current fiscal year. Under the revised tariff structure, the average gas price is set at Rs. 1,762.51 per MMBTU for Sui Southern Gas Company (SSGC) and Rs. 1,778.35 per MMBTU for Sui Northern Gas Pipelines Limited (SNGPL).