The government has abolished the current tiered gas billing system with slabs and discounts, instead moving to a flat rate system for gas consumption. This change will impact domestic and industrial consumers alike, as everyone will be charged the same rate regardless of the amount of gas they use.
Under the new system, the price per unit of gas (MMBTU) will be uniform across sectors, including domestic, commercial, general industry, and even export-oriented consumers. The exact price is yet to be finalized and awaits approval. However, it is expected to be around Rs. 4,501 (excluding taxes) for consumers in Punjab, Khyber Pakhtunkhwa, and Islamabad.
This decision comes on the heels of a recent request by Sui Northern Gas Pipelines Limited (SNGPL) for a 147% increase in gas tariffs. During a public hearing, the company argued that the gas price needs to be raised to Rs. 4,446 per MMBTU to reflect production costs.
Consumers present at the hearing expressed strong opposition to the proposed hike, highlighting the potential for business closures and rising unemployment
due to high gas prices. Stakeholders pointed out that existing gas prices have already forced numerous businesses to shut down, despite the fact that Pakistan sells gas to some customers for as low as $4 per unit while purchasing it internationally for $15.
The Oil and Gas Regulatory Authority (Ogra) chairman acknowledged the concerns of both consumers and gas companies and indicated that a final decision on gas price revisions will be made after careful consideration. It’s important to note that Ogra has scheduled another hearing on the matter in Peshawar tomorrow, March 27th.
The implementation date for any changes in gas prices is expected to be set at January 1st, 2024.
