143% Hike in gas price

[maithil]

Poor must pay more to satisfy some people’s romance for change.

 

[shah_123]

Gas prices increased by 143% for those using more then 400 cubic meters gas. Bhai tery gar me itna gas use hota hy kia ?? Obviously factories, industries and commercial units he itna gas se karty hy. Aqal kay naakhun le mery bhai.



That would be 143%.
Read above

Meray ghar tak pohanchnay ke zarurat nahi hai.

I can't really help if people can't understand a simple concept that the burden of increase in tariffs in industrial, commercial, fertilizer, power sector ; will eventually pass down to common people. ----- increase in utility bills along with ( probable) increase in taxes will hurt business activities.

Government buy gas at around Rs.630 per unit. Thats about 5.5 dollars. And then sell at about Rs.157. Which is about 1.25 Us dollar. Although its fake s.

How you arrived to the conclusion that govt purchases gas for Rs.630 and sells for Rs.157 --- from where you got these two figures?

Don't know how the figure of Rs 630/ per million Btu was arrived at. For the benefit of forum members, let us do a ‘back of the envelope’ estimation of the cost of gas based upon imported LNG.

Qatar LNG price to Pakistan in 13.37% of Brent. The current price of Brent crude is hovering just under $70/bbl. This means LNG price to Pakistan is $9.36 (Say $10/-) per mm BTU. Assuming Rs 130 per USD makes the LNG price at Rs 130/- per mm BTU.

To this, we must add the transmission and distribution costs. I have no idea what these are in Pakistan, but in the US average transmission & distribution cost is about $4/- per mm BTU (about Rs 5/-). Assuming it to be roughly the same for Pakistan, translates into actual out of pocket cost for the imported LNG at Rs 180/- per mm BTU.

The above does not include the losses due to “ Stolen” gas. Let us add another Rs 20/- to compensate for theft. This gives us a total of Rs 200/- per million Btu as a realistic gas selling price based on full recovery of all costs.

In other words, regardless of variations according to the different grade consumers, GOP/ gas companies need to sell the imported gas at the average price of Rs 200/- per million BTU to avoid the net operating loss.

Kindly note that 'well-head' price for indigenous gas is normally set on a different basis in Pakistan, primarily because lower the selling prices, the less foreign exchange would be taken out of Pakistan by the foreign producing companies. However the rational basis, for setting selling prices must be the Import Parity.

I am also wondering how it could be Rs.630 ---

According to this article, it's $12.8 per mmbtu including all the costs + importers margin.
https://tribune.com.pk/story/1756453/2-lng-prices-rise-pakistan-rupee-weakens/

 

[maithil]

https://twitter.com/x/status/1041753811214381059

https://twitter.com/x/status/1041817615864418305

 

[RealNapster]

Don't know how the figure of Rs 630/ per million Btu was arrived at. For the benefit of forum members, let us do a ‘back of the envelope’ estimation of the cost of gas based upon imported LNG.

Qatar LNG price to Pakistan in 13.37% of Brent. The current price of Brent crude is hovering just under $70/bbl. This means LNG price to Pakistan is $9.36 (Say $10/-) per mm BTU. Assuming Rs 130 per USD makes the LNG price at Rs 130/- per mm BTU.

To this, we must add the transmission and distribution costs. I have no idea what these are in Pakistan, but in the US average transmission & distribution cost is about $4/- per mm BTU (about Rs 5/-). Assuming it to be roughly the same for Pakistan, translates into actual out of pocket cost for the imported LNG at Rs 180/- per mm BTU.

The above does not include the losses due to “ Stolen” gas. Let us add another Rs 20/- to compensate for theft. This gives us a total of Rs 200/- per million Btu as a realistic gas selling price based on full recovery of all costs.

In other words, regardless of variations according to the different grade consumers, GOP/ gas companies need to sell the imported gas at the average price of Rs 200/- per million BTU to avoid the net operating loss.

Kindly note that 'well-head' price for indigenous gas is normally set on a different basis in Pakistan, primarily because lower the selling prices, the less foreign exchange would be taken out of Pakistan by the foreign producing companies. However the rational basis, for setting selling prices must be the Import Parity.

How you arrived to the conclusion that govt purchases gas for Rs.630 and sells for Rs.157 --- from where you got these two figures

I wasn’t sure about the exact figures. Hence used words like “around, about”. Bt here, the exact figures....

The SNGP had explained that it was purchasing natural gas from about 40 gas producers at an average rate of Rs629 per MBTU (Million British Thermal Unit) and selling at Rs399 per unit, with a net loss of about Rs230 per unit

https://www.dawn.com/news/1431041

 

[Darth Vader]

Well i may be wrong but majority of Pakistani Home rely on Gas to generate Electricity
And 2nd thing using cng as fuel in cars not in safe manner

Since all the previous projects load shedding should have been fixed or atleast remains 2 to 4 hours
And when they have surplus electricity try to switch electric stoves as it will even lesser

Allow only bigger public transport e.g buses on CNG
As its cheaper in inner cities or closer cities
And put all vehicles on petrol and diesel

Than ask Industry to use CNG so use that gas to power Pakistani industry so it wont have gas shortages which wont affect export capacity

That should lower gas usage , Pakistan Government should support Green projects
Like solar , wind , usage of Leds, energy efficient cooling systems and invest in similar projects by investing in students to bring cheap innovative in market

 

[maithil]

A family whose gas bill used to be 13000 PKR, will now pay 30000 PKR...

With increase in commercial tariff, expect prices of consumables to go through roof.

 

[ssethii]

BC gas petrol se bhi double krdo mc ke bacho oil mafia ki paidawar.

 

[Maxpane]

Keep it up

 

[shah_123]

A family whose gas bill used to be 13000 PKR, will now pay 30000 PKR...

in joint family systems, PKR13000 bill in winter is normal -- our govt is telling us that they have increased rates for rich people but these joint family system are middle class.

 

[Max]

Wrong title, majority of customers will have 10 to 15% increase.

 

[maithil]

in joint family systems, PKR13000 bill in winter is normal -- our govt is telling us that they have increased rates for rich people but these joint family system are middle class.

Exactly... Middle class will be hit. Not a good decision.

 

[shah_123]

Wrong title, majority of customers will have 10 to 15% increase.

View attachment 499562

PTi social media is misleading the people,
they are telling that gas cylinder price reduced by Rs.200 and for 50 mmf the increase in bill is only Rs.22, but they aren't telling you that the burden of increase in tariffs in commercial/industrial/power/fertilizer etc., will be eventually passed on to the people --- also there are joint families (2-4 families) living under one roof with one gas meter, there usage increases in winter season, so high gas usage doesn't necessarily mean rich class.

 

[Max]

PTi social media is misleading the people,
they are telling that gas cylinder price reduced by Rs.200 and for 50 mmf the increase in bill is only Rs.22, but they aren't telling you that the burden of increase in tariffs in commercial/industrial/power/fertilizer etc., will be eventually passed on to the people --- also there are joint families (2-4 families) living under one roof with one gas meter, there usage increases in winter season, so high gas usage doesn't necessarily mean rich class.

Did you hear the speech of Minister, he said he have discussed with power sectors and they will not hike the rates. On fertilizer govt will give subsidy, export industries are totally exampted.

Anyways app batao kya Karen? You need time to increase tax net. Filhal to aise hi guzara hoga..

 

[shah_123]

Exactly... Middle class will be hit. Not a good decision.

i am wondering if this is deliberate or the PTi economics team is also the ones with stunted growth --- there are so many joint families with one gas meter --- there gas usage will naturally go up in winter and they will be charged the highest rates on the assumption that they belong to rich class.

 

[RealNapster]

A family whose gas bill used to be 13000 PKR, will now pay 30000 PKR...

With increase in commercial tariff, expect prices of consumables to go through roof.

i am wondering if this is deliberate or the PTi economics team is also the ones with stunted growth --- there are so many joint families with one gas meter --- there gas usage will naturally go up in winter and they will be charged the highest rates on the assumption that they belong to rich class.

What is your solution ? How do you think government can reduce these 2900 billion deficit in form of budget deficit and circular debt ?