Ogra notifies 124% hike in gas prices

After receiving recommendations from the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA) announced a hike in gas prices from 16.6% to 124.4% for Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited gas users on Wednesday.

OGRA reported that the Ministry of Energy (Petroleum Division) notified the Economic Coordination Committee’s gas sale price decision, approved by the Federal Cabinet, on Wednesday, February 15, 2023. After receiving the suggestion, OGRA announced retail natural gas pricing for each category. OGRA’s website has the notification (www.ogra.org.pk).

Domestic gas consumers who use 100 cubic metres of gas per month will pay Rs 350 per Million British Thermal Unit instead of Rs 300/MMBTU, a 16.6% increase.

Domestic gas consumers who use 200 cubic metres of gas now pay Rs 730/MMBTU, up 32% from Rs 553/MMBTU. Domestic gas clients who use 300 cubic metres of gas now pay Rs 1250/MMBTU instead of Rs 738/MMBTU, a 69pc increase.

The gas tariff for 400-cubic-meter gas users has increased by 99 percent to Rs 2200/MMBTU from Rs 1107/MMBTU. Gas consumers who use more over 400 cubic metres of gas will pay Rs 3277/MMBTU instead of Rs 1460/MMBTU, a 124pc increase.

Commercial gas prices rose 28.6% from Rs 1283 to Rs 1650/MMBTU. Power sector gas prices have increased 22.8pc to Rs 1050/MMBTU from Rs 857/MMBTU.

Export gas prices have increased by 34% from Rs 819/MMBTU to Rs 1100/MMBTU.
The CNG sector’s gas price has raised by 31% from Rs 1370/MMBTU to Rs 1800/MMBTU.
The fertiliser sector now pays Rs 1500/MMBTU, up 46% from Rs 1023.

The cement sector’s gas price rose 17.46% from Rs 1277 to Rs 1500/MMBTU.
The OGRA will collect Rs 50 per month from protected home gas consumers and Rs 500 from non-protected domestic gas consumers from January 1 to June 30, 2023.

The massive gas price hike will generate Rs 310 billion in six months, according to sources. This gas price hike will not affect home consumers who utilise 50 cubic metres of gas.