Ogra raises gas prices up to 45%
Islamabad
The Oil and Gas Regulatory Authority (Ogra) has raised gas prices by up to 45 per cent in order to meet the revenue shortfall of the gas utilities.
In a decision, the oil and gas regulator has allowed Sui Northern Gas Pipeline Limited (SNGPL) an increase of 45 per cent. The gas utility had demanded a 198 per cent increase in gas prices.
Ogra said that the financial impact of previous years’ shortfall of Rs 264.8 billion, which accounted for Rs 720.20 per MMBtu, had been referred to the federal government for an appropriate policy decision and is therefore not made part of the instant determination.
SNGPL seeks an increase in gas prices by 66%
It allowed Sui Southern Gas Company (SSGC) to increase gas prices by 44 per cent in order to meet a revenue shortfall for the year 2022-23. The gas company had called for an increase of 45 per cent in gas prices.
Through this determination, Ogra has requested the federal government for advice on category wise sale prices.
Any revision, as advised by the federal government, shall be accordingly notified by Ogra. Till such time, the existing category wise natural gas sale prices shall continue to prevail.
Ogra works out the Gas Price Increase Impact
The hike in gas prices will help SNGPL to meet the Rs 260.9 billion revenue requirement. SSGC will recover Rs 285 billion from the gas consumers through an increase in gas prices.
The government has already increased the prices of petrol and diesel by Rs 30 per litre each. In addition, the national electric power regulatory authority (Nepra) has hiked the base tariff of electricity rates by Rs 7.91 per unit, taking it to Rs 24 per unit as against Rs 16 per unit.
This is another gas bomb, the regulator has dropped on the consumers.
In recent months, there has been a sharp increase in energy prices that will affect the cost of doing business and the daily lives of the masses.
Gas utilities have been facing high gas theft and losses due to inefficiencies and corrupt practices. SNGPL has been a better performer, whereas SSGC has been the most inefficient company whose losses were high.
SNGPL operates in Punjab and KPK. Therefore, SNGPL has been claiming that it has faced high gas theft in some areas of KPK due to poor law and order situations.
SSGC claims that losses and gas theft in areas of Balochistan are higher than the accumulated overall losses of the company.
