Government planning to increase rates of Electricity and Natural Gas

In this era of inflation the government of Pakistan is once again planning to crack another bomb on Pakistani Nation by increasing the tariff of Sui-Northern up to 14 per cent and 4 per cent in electricity tariff.

According to the statement of a senior officer of Pakistan’s Oil and Gas Regulatory Authority (Ogra), the Ogra has allowed a 14 per cent increase in the natural gas rates for Sui-Northern Gas Pipelines Limited (SNGPL) and 11 per
cent increase for Sui-Southern Gas Company limited (SSGCL), this Thursday

Ogra has also sent an executive summary to the government, which contains information regarding the factors that are causing inflation in tariff. It has also requested government to take specific measures for the mentioned factors
in the executive summary to control the increasing tariff.

In addition, the water and power ministry officials told that the notification for the 4 per cent increase in the electricity tariff has been sent to the legal department for vetting purpose, so that uniform increase in tariff will
be made all over the country in near future.

The statement issued by the cabinet committee on restructuring confirmed the above statement as it stated, "Technical work on tariff determination has been completed and legal work is in under process. In the same way the mechanism
for uniform tariff for the entire country and simplification for tariff are under development.”

An Official confirmed that the prices of almost all oil products including petrol, diesel, kerosene, jet fuel and high octane fuel are also going to face an inflation rate of 6-7 Per cents by November 30.

One of the factors of increasing tariff is the diversion of gas supply from high-tariff clients to low tariff clients. The gas transmission loses are another factor for the rise in tariff. These losses are technically known as unaccounted
loss for the gas. The Ogra cannot bear the increasing transmission loss of gas.

Along with the other factors, the operational cost of parliamentarians’ scheme is also costing an increase of 15 billion per annum.

While keeping in view all the factors, Ogra has advised the government to take necessary measures for controlling of tariff rates in future.