ISLAMABAD-Sui Southern Gasoline Firm Restricted (SSGCL) has sought a hike of as much as 887 % within the safety deposit of unsecured gasoline shoppers to cowl a Rs9.579 billion gasoline provide deposit shortfall.
On common foundation, the corporate has sought 176 % hike within the safety deposit of unsecured gasoline shoppers, taking their current deposits from Rs5.439 billion to Rs15.019 billion. In a petition filed with Oil and Gasoline Regulatory Authority (OGRA), for revision of safety deposit of home shoppers, SSGCL has sought the regulator’s approval for the gathering of further safety deposit of Rs9.579 billion from the shoppers.
OGRA on July 05, 2013, had revised safety deposit for home shoppers whereby as soon as the consumption sample of the patron is established, revision of safety deposit on the idea of annual common consumption of three months could also be carried out by the corporate. The corporate’s current apply is on the identical strains. Nonetheless, the typical home invoice varies throughout winter to summer time due to home tariff slab construction, and default ratio will increase for the reason that GSD cowl turns into inadequate to cater increased payments in winters.
Therefore, as a way to safe the receivables from home shoppers, there’s a must revise the Gasoline Provide Deposit (GSD) on the idea of highest three months consumption through the yr. In accordance the petition, the change of foundation for GSD calculation will assist the corporate to get better the defaulted quantity from the held gasoline provide deposit. At current, only one.697 million (53 %) out of three.186 million home shoppers are secured with their gasoline provide deposit, stated the petition. Whereas, 1.426 million home clients are unsecured with GSD of Rs5.439 billion towards required GSD of Rs15.019 billion, and shortfall is about Rs9.579 billion. Presently, the unsecured 1.426 million home shoppers are paying a median Rs3,816 safety deposit; nevertheless, SSGCL desires to take it to Rs10,535.
SSGCL has proposed 14 totally different slabs based mostly on the shoppers’ month-to-month payments. SSGCL has requested OGRA to permit restoration of gasoline provide deposit shortfall from unsecured home shoppers on the idea of highest three-month consumption through the yr to mitigate default danger and decrease provision towards uncertain money owed. GSD shortfall will probably be recovered in six equal month-to-month installments. The safety deposit for the shoppers with over Rs60,000 month-to-month payments will face an enormous hike of Rs179,092 (887 %) from the prevailing Rs20,193 to Rs199,284. Whereas for the shoppers with the payments of Rs1,000 monthly, the safety deposit will go up by round 24 % from the prevailing Rs1,688 to Rs2,088. For the shoppers with their payments from Rs1,001 to Rs3,000, a hike of 43 % from the prevailing Rs4,341 to Rs6,312 has been sought within the GSD. For the shoppers with Rs3,001 to Rs4,000 payments, a rise of 87 % from Rs4,012 to Rs7,529 has been sought.
For the shoppers with Rs4,001 to Rs5,000 payments, a hike of 119 % from the prevailing Rs3,773 to Rs8,261 has been proposed. For the patron with the payments of Rs5,001 to Rs7,000 who’ve the prevailing safety deposit of Rs3,640, a hike of 160 % has been proposed which is able to take it their GSD to Rs9,461. For the shoppers having the payments of Rs7,001 to Rs10,000, a hike of 172 % has been proposed taking their GSD from the prevailing Rs4,903 to Rs13,357. For the shoppers with Rs10,001 to Rs15,000 billion, a rise of 224 % has been sought taking the GSD from the prevailing Rs5,330 to Rs17,275. For the shoppers with the month-to-month payments of Rs15,001 to Rs20,000, a hike of 255 % has been proposed which raised their GSD from Rs6,827 to Rs24,249. For the shoppers with the payments of Rs20,001 to Rs25,001 SSGCL has proposed a hike of 390 % taking their GSD from Rs5,683 to Rs27,831. For the shoppers with their payments of Rs25,001 to Rs30,000, a rise of 453 % has been proposed taking their GSD from the prevailing Rs5,989 to Rs33,099. For the shoppers with the month-to-month payments of Rs30,001 to Rs40,000, a hike of 336 % has been really useful taking their GSD from Rs10,375 to Rs45,236. OGRA will maintain listening to on SSGCL petition on December 18 in a five-star resort in Karachi.