CNG Gas Price To Go Up By 10%
Government is trying to discourage the use of gas and it has come up with a great scheme: increase the price of gas and place the burden on consumers!
The government is likely to pass on 10 percent raise in gas price to compressed natural gas (CNG) consumers from January 1, 2009. This was decided in a meeting chaired by Advisor to Prime Minister on Natural Resources Dr Asim.
Details from Business Recorder.
The Oil and Gas Regulatory Authority (OGRA) has already allowed the Sui Northern Gas Pipeline (SNGPL) and Sui Southern Gas Company to charge 7.83 percent increase in gas tariff rates effective from January 1, 2009. Gas utilities had demanded over 41 percent gas tariff hike from new calendar year.
It was proposed that 5.05 percent hike in gas prices should be passed onto the fertiliser sector. The meeting discussed a proposal to raise the price for independent power producers (IPPs) by 36 percent, which would equate the price for IPPs and the thermal power plants of Water and Power Development Authority (Wapda).
It was also proposed to raise gas price by 7.5 to 7.64 percent for all types of consumers. The proposal to raise price by 3.85 percent for all types of the consumers was rejected. The meeting also noted that 5 percent gas increase should be passed on to the consumers of the first three slabs that are currently exempted from gas increase. During the first half year of the current financial year government had notified 31 percent gas price hike but exempted consumers of the first three slabs.
The consumers consuming up to 50 cubic metres fall under the category of first slab, 50-100 second slab and 100-200 cubic metres third category. The government had earlier exempted these consumers from hike in gas prices but now it is proposing that 5 percent hike in gas prices should be passed on to these consumers. It is also being proposed to raise prices by 7 percent for domestic consumers of higher slabs. The higher slabs are 400-500 above 500 cubic metres per month.
