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Price of natural gas increases


Price of natural gas increases

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THE PRICE OF natural gas has gone up.

In a media release today, the National Petroleum Corporation (NPC) said the increase was the first for domestic customers in 15 years and 23 years for commercial clients.

The increase “is a result of rising operational costs, a reduction in the availability of indigenous gas from the local wells and the cost of expansion which has increased significantly over the past years”.

“Historically, natural gas was produced locally but these indigenous sources have steadily declining over time while local demand has continued to increase. Within the last two years, in order to ensure the security and sustainability of supply, the NPC has imported natural gas to meet the growing customer demand and declining local supply,” it continued.

As a result, the rate for domestic usage will increase from $1.48 per cubic meter to $1.70 and full details of the new rates for all customers will be stated on gas bills issued after July 6th, 2017.

The rates for commercial usage were not listed, but the costs of installation and reconnection have also increased for householders.

The meter rental fee for domestic customers will move from $3 to $5; deposit on meter testing will move from $5 to $25; the installation fee will increase by $50 from $100 to $150 and the reconnection fee will now be $50 up from $25.

“It is planned that the long term benefit of this rate increase will redound to further expansion of the network, as the NPC plans to increase output by the laying of pipes to allow more customers access to natural gas,” the release said. (PR/SAT)