The concept of protected and non-protected was introduced with aim that poor segment to be protected from price increase whereas high-end user to pay for the actual cost of gas.
Petroleum Division informed the Senate on Tuesday that the federal government revised category-wise consumer gas prices with effect from January 1, this year, to meet revenues of Sui companies during the current financial year and to avoid flow of circular debt.
The concept of protected and non-protected was introduced with the aim that poor segment to be protected from price increase whereas high-end user to pay for the actual cost of gas.
According to a response from the Petroleum Division shared in the Senate session in response to a query from Mushtaq Ahmed Khan of the Jamaat-e-Islami (JI), “Under Section 8(1) and (3) of the OGRA Ordinance 2002, Oil and Gas Regulatory Authority (OGRA) determines an estimate of the total revenue requirement of both Sui companies for natural gas”.
The JI senator asked the Petroleum Division to explain why domestic consumer natural gas prices have increased significantly since January 1 of this year (both protected and unprotected).
“The federal government accordingly, within 40 days, was required to advise the authority of minimum charges and the sale price for each category of retail consumers, based on the estimated revenue requirement (ERR) for fiscal year 2022–23 by OGRA.
The government was required to revise the gas prices with effect from January 7, 2022, but the said decision was deferred.
In order to meet Sui companies’ revenue needs for the current fiscal year and prevent the flow of circular debt, the government later revised the category-wise consumer gas prices with effect from January 1, 2023, based on revised estimates of revenue requirements.
The Petroleum Division responded, “The concept of protected and non-protected was introduced with the goal of protecting the poor segment from price increases while requiring high end users to pay for the actual cost of gas.
State Law Minister stated on the floor of the house that the government’s prompt actions have improved the situation for consumers with regard to gas supply this year compared to prior years.
In the meantime, the government’s Pakistan Council of Research in Water Resources Amendment Bill 2023, which addresses hiring at the Pakistan Council of Research in Water Resources (PCRWR), was passed by the Senate.
According to the statement of objects and reasons for this bill, the PCRWR was founded in 1964 and is currently operating as a body corporate under the Ministry of Science and Technology (MoST) under the PCRWR Act 2007.
The PCRWR Act of 2007 mandates that PCRWR rules include provisions for two types of appointments: contractual and permanent.
This complicated method of hiring allows for the advertising of a given position twice, according to the statement. The statement further stated that the amendment is being proposed in the act to make the hiring process more straightforward and transparent. The meeting was suspended until Friday.