OGRA notifies RLNG prices, again

Increases prices for consumers by up to 2.5%

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has again notified the provisional prices of regasified liquefied natural gas (RLNG) for the month of August.

Earlier, it had withdrawn the notification of RLNG prices following criticism for costlier purchase of the imported fuel by Pakistan State Oil (PSO) at $20 per mmbtu.

In a tweet on Friday, PSO stated retender done for the procurement of LNG for the delivery period August 29-30, 2021 (after scrapping the initial tender on July 27, 2021 due to high rates) was opened today.

The bid received translates into $15.9271 per mmbtu, which is very competitive with current market rates. PSO further added that it has saved the national exchequer Rs2.1 billion.

The government has further increased the price of RLNG by 2.33% for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and 2.5% for Sui Southern Gas Company Limited (SSGC) for the month of August.

The regulator increased the provisional price of RLNG for the consumers of both gas companies and jacked up the rates for consumers of SNGPL by $0.3015 per mmbtu or 2.33% while for the consumers of SSGC it has been increased by $0.3163 per mmbtu or 2.5%, said a notification.

After the increase, the price of RLNG went up from $12.9160 per mmbtu in July to 13.2175 per mmbtu in August for the consumers of SNGPL. The price of RLNG for consumers of SSGCL was also increased as compared with the previous month of July from $12.6386 to $12.9549 per mmbtu in August.

The government imported 12 cargos of LNG in August, six through PSO and six through spot purchase by Pakistan LNG Ltd (PLL).

Published in The Express Tribune, August 7^th, 2021.

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