OGRA Hikes Gas Price by 300% for Domestic Consumers


The Oil and Gas Regulatory Authority (OGRA) has dropped a bombshell on gas consumers by jacking up prices by 300%. The 300% increase will be levied on domestic consumers only while users from the power, commercial, industrial, and other sectors will see an increase of 30%.

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Consumers will have to pay up to Rs 160 billion more due to the price hike. The outgoing government, at the end of its tenure, approved the collection of Rs 117 billion from gas consumers as well.

The former government also launched multiple gas schemes to gain support from certain quarters in the upcoming elections. The public will have to pay for those schemes as well as the government announced to raise Rs 23 billion from them.


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Details about the Increase

According to the reports, the average gas price will be increased by Rs 4 per Million British Thermal Units (MMBtu). After the increase, the new price will be raised to Rs 629 per MMBtu.

Furthermore, the consumers will also have to pay for gas leakages and theft. The reports add that Sui Northern Gas Pipelines Limited (SNGPL) and Southern Gas Company Limited (SSGCL) will collect Rs 11 billion and Rs 10 billion respectively on account of leakages and theft.


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OGRA also ended the subsidy for domestic gas consumers under which they were getting the gas for cheap. The tariff for domestic consumers has been increased by 300% for domestic consumers for different slabs. Here is how the prices will be increased:

  • 50% increase in gas price for the 1st slab of domestic consumers, the new price for this is set at Rs 314 per MMBtu.
  • For the 2nd slab, the new price is set at Rs 629 per MMBtu after a 300% increase.
  • The 3rd slab of domestic consumers will see an increase of 30% after which the new price will be set at Rs 629 per MMBtu.
  • The tariff for gas used in power sector, CNG cement, and fertilizer plants, and general industry has been increased by 30%.


The regulator sought details about the Rs 150 billion amount previously collected by the PML-N government as well. As per reports, the government, instead of subsidizing gas for consumers and investing in gas projects, used the money in Metro bus and other projects.

OGRA made it clear that no changes in the policy forwarded to the government will be accepted. Therefore consumers should brace themselves for the price hike to be implemented in full.

Via PT

Originally Published on ProPakistani.com


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