Ogra allows increase in gas prices up to 14 %

Oil and Gas Regulatory Authority (Ogra) has allowed an increase in gas prices up to 14 percent for gas utilities.

The regulator has allowed 14 percent increase in gas prices for SNGPL and 7 percent for SSGC consumers.

Oil and Gas Regulatory Authority (OGRA), under Section 8(1) of OGRA Ordinance, 2002, vide its decisions dated August 17, 2021, has determined the Estimated Revenue Requirement of SNGPL & SSGCL for FY 2021-22.

Both determinations have been sent to Federal Government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance.

Summary of revenue requirement determination as claimed by SNGPL vis-a-vis allowed by OGRA for FY 2021-22 is as under;

The financial impact of SNGPL’s previous years’ shortfall of Rs. 254,108 million i.e. Rs. 669.75/MMBTU has been referred to Federal Government for an appropriate policy decision and is, therefore, not made part of the instant determination.

A comparative of SSGCL’s demand vs allowed for FY 2021-22 is as under;
OGRA has reduced the gas companies’ demand for an increase in gas prices for FY 2021-22. Moreover, taking cognizance of high pendency of gas connections in gas utilities’ system besides many incomplete development projects, the Authority has directed sui companies to immediately proceed for installation of all ongoing/incomplete projects, as previously authorized. In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against significant number of gas pilferers /nonconsumers, located in its franchise area so as to bring down its ever-increasing UFG.
Through the above-said determination, Federal Government has been requested for advice on category-wise sale prices. Any revision, as advised by Federal Government, shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall continue to prevail.
The details of OGRA’s decision regarding revenue requirements of gas utilities are available at ogra.org.pk.