Gas prices to be hiked from January

KARACHI: The government has decided to increase gas tariff for different consumers in the range of 13.98% to 207% from January 1, 2012.

According to details, the gas prices for domestic, commercial, cement industry, WAPDA and KESC would be increased by 13.98% and for industrial sector by 16.95%. In addition to the above, the government has also decided to impose Gas Infrastructure Development Surcharge (GIDS) on five sectors, excluding domestic and commercial sectors. For fertiliser sector, gas tariff would increase by PkR 197 per mmbtu which is up by 207.1%, for new fertiliser plants it would be up by 1.81%, industrial sector PkR 13 per mmbtu, KESC to bear PkR 27 per mmbtu, and independent power plants (IPPs) running on gas PkR 70 per mmbtu higher by 34.57%.

Gas price for compressed natural gas (CNG) stations in zone-1 would be raised by 38.63%, which consists of Khyber-Pakhtunkhwa (KP), Pothohar, and Baluchistan, while in zone-2 which consists of parts of Punjab and Sindh, gas tariff for CNG sector would be increased by 27.79%.

The government has also decided to impose petroleum levy of PkR 5 per kg on the owners of CNG filling stations. Ogra has already made capacity allocations to import 1.4 billion cubic feet per day (BCFD) of LNG to three companies and first delivery is expected by the middle of 2012.

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