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Gas becomes dearer as 50% hike notified
Gas becomes dearer as 50% hike notified

Express Tribune

time30-06-2025

  • Business
  • Express Tribune

Gas becomes dearer as 50% hike notified

Listen to article The government on Sunday notified an increase in the fixed charges on gas bills by 50% and also jacked up gas tariffs for non-residential consumers. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA) on Sunday, the fixed charges were increased by Rs200 to Rs600 for the protected category of domestic consumers. In the non-protected category, the fixed charges were increased from Rs1,000 to Rs1,500 for monthly consumption of up to 1.5 hm3. Likewise, the fixed charges for consumption exceeding 1.5 hm3 were jacked up to Rs3,000. The protected category includes a domestic consumer whose average consumption of last 4 winter months (November to February) shall be below or equal to 0.9 hm3. In contrast, the non-protected category includes a domestic category whose average consumption of last 4 months shall be above 0.9 hm3. The revised tariff also applies to various institutional and commercial entities. Government institutions, semi-government bodies, hospitals, and educational institutions will now be charged Rs3,175 per MMBTU. For traditional tandoors (bread ovens), gas rates have been set between Rs110 and Rs700 per MMBTU, depending on usage levels. Commercial consumers will now pay Rs3,900 per MMBTU, while general industrial users will be charged Rs2,300 per MMBTU. Captive power producers — industries generating their own electricity — will pay Rs3,500 per MMBTU, and CNG stations will be billed at Rs3,750 per MMBTU. Cement factories will face the highest tariff among industrial users, with rates set at Rs4,400 per MMBTU. Fertilizer plants will be charged Rs1,597 per MMBTU. For K-Electric and other electricity generation companies, the new tariff has been fixed at Rs1,225 per MMBTU. The Oil & Gas Regulatory Authority last month determined the Estimated Revenue Requirements (ERR) for FY 2025-26 for both SNGPL and SSGCL. According to the determinations, SNGPL requires revenues of Rs534.5 billion and SSGCL requires revenues of Rs354.2 billion to sail through the FY 2025-26 respectively. The cumulative revenue requirements of both the Sui companies are Rs888.6 billion for the FY 2025-26. The law mandates the federal government to ensure that the consumer gas sale prices should not be less than the revenue requirement determined by the Authority. At the previous notified consumer gas sale prices effective February 01, 2025 the estimated revenues of both Sui companies by end FY 2025-26 were Rs847.714 billion. Some of the members of the ECC criticized giving guaranteed 24% return on assets to Sui companies, which discourage efforts to improve efficiency by reducing line losses. The prices were changed to meet a condition of the International Monetary Fund to biannually adjust the gas prices.

OGRA announces 50% gas price hike effective from July 1
OGRA announces 50% gas price hike effective from July 1

Express Tribune

time29-06-2025

  • Business
  • Express Tribune

OGRA announces 50% gas price hike effective from July 1

Listen to article The Oil and Gas Regulatory Authority (OGRA) has officially issued a notification for a significant increase in gas prices for domestic and other consumer categories, with the new rates coming into effect from July 1, 2025. The move brings further financial pressure on inflation-hit citizens, as domestic gas tariffs have been revised upward by up to 50% in certain categories. According to the official notification, domestic gas prices have been revised substantially. For household consumers, the new rates will range from Rs200 to Rs4,200 per MMBTU. The tariff structure separates consumers into protected and non-protected categories. Protected domestic consumers—generally low-income households—will pay between Rs200 and Rs350 per MMBTU, while non-protected consumers will face considerably higher rates ranging from Rs500 to Rs4,200 per MMBTU. In addition to the unit-based charges, OGRA has introduced fixed monthly charges for domestic users. Read More: Fixed gas charges jacked up by 50% Protected consumers will be required to pay Rs600 per month, whereas non-protected consumers will be billed Rs1,500 monthly. Furthermore, non-protected households consuming more than 1.5 MMBTU per month will be subject to an increased fixed charge of Rs3,000 per month. The revised tariff also applies to various institutional and commercial sectors. Government institutions, semi-government bodies, hospitals, and educational institutions will now be charged Rs3,175 per MMBTU. For traditional tandoors (bread ovens), gas rates have been set between Rs110 and Rs700 per MMBTU, depending on usage levels. Commercial consumers will now pay Rs3,900 per MMBTU, while general industrial users will be charged Rs2,300 per MMBTU. Captive power producers—industries generating their own electricity—will pay Rs3,500 per MMBTU, and CNG stations will be billed at Rs3,750 per MMBTU. Cement factories will face the highest tariff among industrial users, with rates set at Rs4,400 per MMBTU. Fertilizer plants will be charged Rs1,597 per MMBTU. For K-Electric and other electricity generation companies, the new tariff has been fixed at Rs1,225 per MMBTU. Also Read: Govt raises gas prices by 10% for commercial users The notification comes a day after the Economic Coordination Committee (ECC) of the Cabinet approved a revised gas pricing framework, including an average 10 per cent increase in tariffs for bulk, industrial and power sector consumers. While the ECC maintained existing gas prices for household users, it permitted an upward revision in fixed monthly charges for domestic consumers, aimed at recovering infrastructure and asset costs of gas utilities. Officials said the tariff adjustments are expected to shore up revenue for gas distribution companies and reduce the financial burden of energy subsidies, a central condition in Pakistan's ongoing economic stabilisation programme backed by the International Monetary Fund.

Car dealer ordered to refund money for selling a lemon
Car dealer ordered to refund money for selling a lemon

The Star

time19-05-2025

  • Automotive
  • The Star

Car dealer ordered to refund money for selling a lemon

Ramizi started having problems almost immediately with the car he bought. A MANAGER sought help from Johor Consumer Claims Tribunal after he was stuck with a highly problematic vehicle. Ramizi Bajuri, 41, was keen on a Japanese four-door sedan at a dealership in Jalan Parit Bilal, Batu Pahat, Johor. He contacted a salesman on May 25 last year about the vehicle. However, the salesman informed him that the car had been sold and proposed another car of the same model with a different registration plate. 'I asked the salesman about the condition of the car and he assured me that it was good,' said Ramizi. He paid a RM3,000 deposit and submitted documents to secure a loan from the company for the car priced at RM36,313. Ramizi also traded in his Japanese compact sedan for RM6,000. In total, he paid RM19,225 and secured RM17,088 in a credit loan for 36 months, with a monthly payment of RM475. 'I have yet to receive a copy of the car registration card, and the dealer promised that the company would be fully responsible if the vehicle gave any problems,' he told the Tribunal. The claimant took possession of the car on June 5 last year. On the way home he found malfunctions, namely the window on the passenger side and the left side mirror, and took it to the dealer for repairs. On June 12, he found problems with the gearbox and returned the vehicle to the dealer three days later for further repairs. 'It took them almost two weeks and on June 28, I took back the car. 'On July 1, I found that the engine oil had dried up,' he said. Ramizi refilled the oil that day and again found it totally dry on July 18, because of a leak. A few days later on his way to work, the claimant heard sounds coming from the tyres and went to the nearest workshop. 'The foremen found that the absorber and upper control arms of the car were spoilt, so I had them replaced for RM1,160,' he said. The engine oil issue recurred on Oct 6 after it was refilled on Sept 19. The claimant sent the car to the dealer on Oct 19 and the issue was fixed the same day. However, the problem resurfaced again on Nov 22 but this time, the dealer did not take any action when informed. 'I asked the dealer about replacing the car but he was only willing to buy the car back at a much lower price,' he said. Ramizi said his car problems did not stop. On Jan 11, he was detained by police at a roadblock when it was detected that the car had been flagged as a missing vehicle. 'I again discussed the car's problems with the dealer on Jan 12 and 13,' he said, adding that the solutions proposed were not to his satisfaction. Tribunal president Hafez Zalkapli ordered the respondent to refund RM18,000 to the claimant within two weeks. The claimant is to return the vehicle to the respondent. Those who need Tribunal assistance can call 07-227 1755/ 1766.

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