PETROLEUM DIVISION STATEMENT ON REVISED GAS PRICES.

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Islamabad: This refers to media reports in light of ECC’s decision on summary of revised gas prices on September 30, 2020. It has been observed that certain section of media reported the decision of the forum erroneously which subject to ratification of Cabinet by next week. The factual position is as follows:
In first summary by the Petroleum Division for annual gas price revision, the ECC decided to keep the gas tariffs unaffected for domestic and Roti Tandoors from July 1, 2019 levels. It was also decided that the applicable GIDC would be eliminated for all other customers in light of order of Supreme Court and the prices for those previously subject to GIDC would be increased by one-third of what would have been applicable GIDC. Following table will lead to actual figures as proposed.

Second summary pertained to supply of gas to five export oriented industrial sectors in the SSGC’s system; which was approved by ECC, whereby blend of available local gas with LNG would be supplied to these industries at the rate of Rs. 930/MMBTU for five months of winter season till end of February 2021 in view of drastic drop in production of indigenous gas in Sindh. After February 2021, the supply of local gas will resume as per existing practice when the demand from domestic sector get normalized. For comparison, five export sector industries in Punjab are being provided LNG at the rate of USD 6.5/MMBTU (approx. Rs1080) as per agreement.

The government has agreed and approved upon this formula to protect the export-oriented industry in SSGC system by supplementing the gas supply with LNG during winter after discussion with the industry.

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