New domestic gas connections start
New domestic gas connections start as the federal government brings long-awaited relief to domestic consumers after a gap of three years. Unlike before, these new connections will now be provided on an LNG tariff instead of conventional subsidized gas. This significant decision comes in response to the backlog of lakhs of pending applications from households across the country.
New domestic gas connections will be provided on LNG tariff
According to Petroleum Division officials, the government has decided that new domestic gas connections will be provided only as per LNG prices. This means that consumers will be provided with expensive imported LNG instead of subsidized natural gas. This step has been taken in view of the gas crisis and limited resources in the country.
The process of new connections will start regularly from the next financial year.
New fee structure – New system for both general and urgent connections
The Petroleum Division has introduced a new fee structure for new gas connections. The details are as follows:
- Demand notice fee for normal connection: Rs 18,000
- Proposed fee for urgent connection: Rs 80,000
These fees are significantly higher than the previous system; however, this decision has been taken keeping in mind the price of LNG and infrastructure costs.
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Millions of applications are pending across the country
Currently, millions of applications have been pending with Sui Northern Gas Pipelines and other companies since 2017. According to the report:
- More than 3.5 million people across the country have applied for gas connections.
- Out of these, only 2.5 million applicants have submitted a demand notice fee of Rs 3,000 to Rs 10,000.
- There are about 4,000 people who have submitted an urgent fee of Rs 25,000 each.
The public clearly has a strong demand for connections, and now, these applications will be processed in a phased manner.
Full details of connection costs
According to the new system, the cost of gas connections for different sizes of houses will vary:
- Cost of gas connection for houses of 5 to 10 marla: Approximately Rs 40,000
- For houses larger than 10 marla:
- Demand notice fee: Rs 23,000
- Security fee: Rs 20,000
The consumers will have to pay all these costs in advance. Officials say that old applicants will also have to pay extra as per the new rates.
New rules and regulations – First-come, first-served
The Petroleum Division has made it clear that:
- Only those consumers who deposit the full fee in advance will be able to get a new gas connection.
- The previous limit of one lakh connections in a year has been abolished.
- Now connections will be given only according to the availability of gas and the presence of meters, that is, if gas and meters are available in the relevant area, then the connection will be installed.
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Next steps – consumers will be formally informed soon
This decision will come into effect after the approval of the federal cabinet. After approval, Sui Gas companies will formally inform all old and new applicants to complete their payments so that their connection can be installed.