Islamabad: The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the price of gas for captive power plants. However, gas prices for domestic consumers, as well as other sectors, will remain unchanged.
Gas Price Hike for Captive Power Plants
OGRA has raised the gas price for captive power plants by 500 rupees per MMBtu, bringing it to 3,500 rupees per MMBtu, up from 3,000 rupees. This price increase applies to gas used by plants that generate electricity for their own use. The new gas prices will come into effect from February 1, 2025.
The decision follows weeks of deliberation, with government officials initially facing difficulties in finalizing the increase. Captive power plants had been reluctant to accept the proposed hike in gas tariffs, but the adjustment has now been confirmed.
No Change in Prices for Domestic Consumers
OGRA has confirmed that the gas prices for domestic consumers will remain unchanged. This means that households across the country will not face an increase in their gas bills. Additionally, gas prices for other sectors, including commercial establishments, CNG stations, and the cement industry, will also remain the same.
Fertilizer and Power Sectors Unaffected
Gas rates for the fertilizer and power sectors will also stay at the current levels. These sectors will not see any price hikes, ensuring that critical industries remain unaffected by the recent changes. The government has decided to keep these rates stable in order to support continued production and avoid disruptions in essential services.
Impact on Captive Power Plants
The rise in gas prices for captive power plants is part of a broader effort to adjust gas tariffs in line with market conditions. These plants generate power primarily for their own use, often relying on natural gas to meet energy demands. The price increase is expected to have an impact on the operating costs of these plants, which may, in turn, affect the overall cost of production in industries relying on this energy source.
The government had been in a dilemma over whether to approve the gas price increase for captive power plants. While some stakeholders were in favor of the hike, others expressed concern about its impact on industrial operations. After much discussion, the price increase was finalized, and the new rates will come into effect next month.
The price hike for gas used by captive power plants marks a significant shift in the country’s energy pricing policy. While domestic consumers and several key sectors remain unaffected, the rise in costs for captive power plants is expected to have broader economic implications. The new prices will take effect from February 1, 2025, and businesses will need to adapt to the changes in the coming months.
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