News
Sunday, August 07, 2011
OGRA decides to increase gas price by 13.55 percent* Federal government proposes Rs 8 per kilogramme increase in price of CNG
* APTMA advocates diversion of gas to industryBy Zeeshan Javaid
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Saturday decided to increase gas prices by 13.55 percent for all sectors. A notification has yet to issued in this regard.
Well-placed sources informed Daily Times that this increase has been decided upon to cover Unaccounter for Gas (UFG) losses by Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC). It was also learnt that OGRA has decided to increase UFG losses from 4.5 percent to 8 percent, while the total burden of UFG losses is being shifted onto gas consumers through severe gas load shedding across the country.
Once a notification, expected on Monday, is issued, CNG gas would be available at the approximate price of Rs 66.83 per kilogramme.
The federal government already submitted a proposal for the increase in the price of gas in the Economic Coordination Committee for final approval. The federal government proposed an increase in CNG prices by Rs 8 per kilogramme.
The Economic Coordination Committee of the Cabinet is considering the proposal, which has been endorsed by the All Pakistan CNG Association. If the ECC endorses the recommendation, CNG prices will be increased to 55 per cent of petrol prices. The petroleum ministry earlier wanted to increase CNG prices to 65 per cent of petrol prices but the proposal was turned down.
The petroleum ministry has also sought an increase of 15 per cent in gas prices for domestic and commercial consumers, over 18 per cent for industries, 36 per cent for independent power producers and 96 per cent for the fertiliser sector.
The ECC, in a meeting held on June 30, already approved a three-day gas holiday for CNG stations in Punjab to divert additional gas to the industry. Earlier, gas used to be supplied to the industry four days a week and five days a week to CNG stations.
After reaching an agreement with the CNG Association, the Oil and Gas Development Authority has worked out an increase of Rs 8 per kg in CNG prices. Thus prices have increased from Rs 59.6 per kg to Rs 67.6 per kg in Khyber-Pakhtunkhwa, Balochistan and Potohar region. In Sindh and Punjab, CNG prices are expected to increase by Rs7.4, bringing the price to Rs 64.18 per kg from Rs 56.8 per kg.
CNG stations consume 200 million cubic feet of gas per day. The industry, however, saves only 125 million cubic feet per day during the days it is shut, indicating theft of gas.
All Pakistan Textile Mills Association (APTMA) has been advocating the diversion of gas to the industry rather than the transport sector. According to APTMA President Ijaz Gohar, the textile industry employs 15 million people, while CNG stations provide jobs to 44,000 people at 3,300 stations across the country.
“We are compromising on job security of hundreds of thousands of daily wagers in order to save a few thousands rupees on account of fuel,” he said earlier. Sources said that, despite a proposed increase in the price of gas by 96 per cent for the fertiliser sector, the impact on the fertiliser industry will not be significant as gas has only a five per cent in determinating a commodity’s price.
Courtesy www.dailytimes.com.pk