ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has asked the government to apply equal gas rates to all consumers irrespective of categories and sectors to ensure recovery of true cost of gas without any discrimination and end gas sector circular debt.
The rates for consumers in lower usage categories of domestic and special commercial sectors, like tandoor, would, according to Ogra’s two separate determinations, increase by over 600 per cent in July if the federal government accepts the regulator’s advice to meet the revenue requirements of gas companies.
“All the categories of consumers must at least pay the average cost of service keeping in view the existing cost of alternative or substitute sources of energy. Resultantly, there shall be no situation of unmet revenue requirement. This shall provide a level playing field for all concerned and avoid the situation of revenue shortfall,” Ogra wrote in its determinations on revenue requirements of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) last week.
In its determination, Ogra has also forwarded category-wise prescribed prices for the fiscal year 2022-23. Under this determination, the regulator has also recommended charging an equal rate of Rs854.52 per unit to all consumers irrespective of their sectors and existing slabs.
