ISLAMABAD, June 30: The government on Thursday increased the natural gas prices throughout the country by 5.81 to 12.5 per cent except domestic consumers using up to 100 units, with effect from July 1, 2005, said a notification.

The Oil and Gas Regulatory Authority (Ogra) issued the notification after approval by the federal government. The 5.81 per cent increase in rates is also applicable to compressed natural gas (CNG) vehicles.

Ogra had earlier recommended a 5.52 per cent increase for all consumers across the board including residential consumers, owing to 12.3 per cent increase in crude oil prices to which the domestic gas prices are linked. The government, however, decided to exempt small domestic consumers of first 100 units (First slab). This exemption increased the prices for other consumer categories, Ogra’s member finance M. H. Asif told Dawn.

The prices of feedstock for old fertilizer companies have been enhanced by 12.5 per cent. The tariff for all other consumers including residential, hotels, hostels, industries, power sector, ice factories and cement sector have been raised by 5.81 per cent.

The minimum monthly charges for residential, commercial, ice factories, industrial, captive power, CNG, cement, fertilizer and power plants has also been increased by an across the board 5.81 per cent.

The increase in tariff would increase the overall cost of gas by Rs7 billion to Rs157 billion. This will comprise Rs130 billion payment to gas producers as cost of gas, Rs18 billion transmission and dispatch cost and Rs9 billion return on assets to two gas utilities — SNGPL and SSGCL. This will also yield Rs2 billion gas development surcharge.

According to the notification, the domestic price for 100 cubic meters per month would remain unchanged at Rs73.95 per MMBTU (Million British Thermal Unit). The rates for second slab (100-200 cubic meters) have been increased by 5.81 per cent (Rs7) per MMBTU to Rs127.62 from Rs120.61 per MMBTU.

Similarly, the price for third slab (200-300 cubic meters) has been raised by 5.81 per cent (Rs11.21) from Rs192.96 to Rs204.17 per MMBTU. The tariff for the fourth domestic slab (300 cubic meters and above) have been jacked up to Rs265.59 from Rs251 per MMBTU, up by Rs14.58 per unit at 5.81 per cent.

About 72 per cent of domestic consumers fall in the first slab and would remain unaffected. There are 19 per cent domestic consumers in second slab, seven per cent in third and two per cent in fourth domestic slab and all these would face an increase of 5.81 per cent.

The rates for hostels and residential colonies have also been enhanced by Rs7 (5.81 per cent) to Rs127.62 per MMBTU. The gas rates for commercial consumers and ice factories have been raised by Rs12.89 (5.81 per cent) to Rs234.67 per unit.

Mr Asif said the domestic consumers were still enjoying a subsidy of 113 per cent in first slab, 70 per cent in second slab, 30 per cent in third slab and six per cent in fourth slab.

Total subsidy amounts to Rs9 billion.

The gas rates for CNG, industrial power, captive plants, fertilizer fuel and power sector have been raised by Rs11.45 (5.81 per cent) to Rs208.56 per MMBTU from Rs197.11. The gas price for cement plants has also been increased by Rs13.19 (5.81 per cent) to Rs240.28 per MMBTU.

The tariff for fertilizer feedstock for Dawood Hercules and Pak-Arab Fertilizer have been increased by 12.50 per cent or Rs9.25 per MMBTU to Rs83.24 per MMBTU. Similarly, the prices for Pak-China Fertilizer, Hazara Phosphate Fertilizer have been increased by 12.51 per cent (Rs9.82 per MMBTU) to Rs88.34 per MMBTU.

He said the increase in cost of gas has been allowed to the extent of Rs7.2 billion although the real increase in cost of gas was estimated at Rs12.3 billion as the difference would be met through 4.7 per cent increase in gas consumption and consumption pattern.