Ogra Increases Gas Prices Up To 50%
Oil and Gas Regulatory Authority (Ogra) increases gas prices for the gas consumers of both gas utilities-SNGPL and SSGC for the financial year 2023-24.
The gas regulator had made a huge increase of 50 percent in gas prices for the consumers of Sui Northern Gas Pipeline Limited (SNGPL).
It has also allowed a 45 percent increase in gas prices for the consumers of Sui Southern Gas Company Limited (SSGCL).
SNGPL had sought an increase of 286 percent for the financial year 2023-24.
The company sought an increase of Rs 2206.19 per MMBtu and Ogra allowed Rs 415.11 per MMBtu which amounts to a 40 percent hike in gas prices for consumers of SNGPL.
SNGPL had requested the regulator to set the average prescribed price of gas at Rs 2977.51 per MMBtu by raising the tariff by 286 percent.
However, Ogra allowed a 50 percent increase in gas prices which took the prescribed price of gas at Rs 1238.68 per MMBtu.Gas utilities seek massive hike in gas prices in 2023
SSGCL had sought an increase of 42 percent in gas prices but Ogra allowed a 45 percent increase in gas prices.
SSGC had sought Rs 388.01 per MMBtu increase in gas prices. The regulator allowed Rs 417.23 per unit increase in gas prices.
After an increase in gas prices, the prescribed price stands at Rs 1350.68 per unit.
Ogra in a statement said that
The Oil and Gas Regulatory Authority (OGRA) determines the revenue requirements of sui companies for FY 2023-24.
The average prescribed price per MMBTU of gas is recommended as Rs.1238.68 and the increase in price per MMBTU is Rs.415.11 with an increase percentage of 50% for SNGPL.
The Average prescribed price for SSGC is determined as Rs.1350.68 with an increase in price per MMBTU is Rs.417.23 and the increasing percentage is 45%.
It is pointed out that the average prescribed price determined by OGRA mainly comprises of cost of gas which constitutes approximately over 85% of the determined price.
The cost of gas is a pass-through item and is calculated in accordance with the agreement signed between the Government of Pakistan and gas producer companies.
The 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 www.ogra.org.pk.
