ISLAMABAD, Pakistan: The federal government has clarified that no notification with regard to “hike in gas prices by 214% for domestic gas users”, as news appearing in the media, has been issued.
In a clarification statement issued by the Ministry of Energy (Petroleum Division) on Wednesday, it was said that the proposed hike is neither definitive nor has it been accorded approval at any forum.
“Media’s insertion that an increase of 214% in gas prices for domestic sector has been decided is strongly denied,” it was stated.
It was further stated that the process of determining gas price tariffs are established and well known. The gas price revisions are made twice a year after taking into account a number of factors and denominators.
The statement stated that the Oil and Gas Regulatory Authority (OGRA) under Section 8 (1)/8 (2) of the OGRA Ordinance, 2002, “determines an estimate of the total revenue requirement” and “advises the federal government the prescribed price of natural gas for each category of retail consumer of natural gas.” This determination by the OGRA is also known as the prescribed price whereas under Section 8 (3), it is the federal government’s prerogative to determine the final price after a consultative mechanism which primarily includes the forum of the Economic Committee of the Cabinet (ECC) and later the Federal Cabinet.
The views/suggestions and input of Ministries/Divisions most likely to be impacted by such a hike such as food, power, textile, industry etc are taken into account before any decision on prices is made.
It noted that the price increase and numbers being quoted in the media is just a “proposal.”
“A final decision and notification of new prices will be made after the established deliberative process is exhausted. Therefore, it is requested to kindly refrain from the publicity of any “proposed numbers” until final gas prices are notified,” the statement concluded.