Minimum gas tariff hiked

ISLAMABAD: The government on Friday increased the minimum charges for captive power plants of five zero-rated manufacturing sectors by 462 percent from earlier Rs3,600 to Rs20,232/month. These sectors are textiles (including jute) carpets, leather, sports and surgical goods.

The minimum gas charges for bulk domestic consumers and commercial gas consumers have also been increased; however, the household has been exempted from the increase, a notification of Oil and Gas Regulatory Authority (Ogra) said Friday.

The minimum charges here are those which are charged by the utility if you consume the gas or not, you will have to pay it. In other words, it is just like meter rent in the electricity bills or line rent of the PTCL phone connection.

According to the notification, in domestic sector, the bulk consumers like government and semi-government offices, hospitals, clinics, maternity homes, government guest houses, armed forces messes, langars, universities, colleges, schools and private educational institutions, orphanages and other charitable institutions, along with hostels and residential colonies, to whom gas is supplied through bulk meters, including captive power, has been increased from earlier Rs3,600/month to Rs4,680/month, with a hike of 30 percent.

While for all established commercial units with local authorities or dealing in consumer items for direct commercial sale like cafes, bakeries, milk-shops, tea stalls, canteens, barber shops, laundries, hotels, malls, places of entertainment i.e. cinemas, clubs, theaters, and private offices, corporate firms etc has been increased, and ice factories have been increased from earlier Rs4,625.6 to Rs5,880.1/month, depicting an increase of 27 percent.

The notification further says that in earlier notification issued by the regulator on October 4, 2018, the rates were given for general textiles (including jute) carpets, leather, sports and surgical good (which are zero-rated). But, now it has been revised and made it mandatory that these prices would be available only to ‘registered’ manufacturers or exporters of these five zero-rated sectors but also included in it their captive powers.

Besides, the rates, already given to the Fauji fertilizer company Ltd and was also provided to the Goth Machi district Rahim Yar Khan, but in new notification Mirpur Mathelo, district Ghotki has been added.

Meanwhile the spokesman of Ogra said, “No minimum charges in respect of domestic consumers have been revised. Minimum charges of bulk domestic consumers have been actually revised from Rs3,600.07 to 4,680.09 per month, in line with rate increased under this category. Rs1,053/month in October 4, 2018 notification was erroneously written which has been rectified. Minimum charges in respect of commercial consumers have been revised fromRs4,625.60 to 5,880.10 per month, in line with increase made under this category.”