OGRA raises gas prices by 45 per cent

Move aimed at addressing revenue shortfall for 2022-23

ISLAMABAD:

The Oil and Gas Regulatory Authority (OGRA) has raised gas prices up to 45 percent in order to meet the revenue shortfall of gas utilities.

The oil and gas regulator has allowed Sui Northern Gas Pipeline Limited (SNGPL) to increase prices by up to 45 percent. The gas utility had demanded a 198 percent increase in gas prices.

OGRA said that the financial impact of the previous year’s shortfall of Rs264.8 billion that accounted for Rs720.20 per mmbtu had been referred to the federal government for an appropriate policy decision and is therefore not made part of the instant determination.

It also allowed Sui Southern Gas Company (SSGC) to increase gas prices by 44 percent in order to meet revenue shortfall for the year 2022-23. The gas company had called for an increase of 45 percent.

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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.

The hike in gas price will help SNGPL meet its Rs260.9 billion revenue requirement. SSGC will recover also Rs285 billion from gas consumers through revised gas prices.

It is worth mentioning here that this development follows a surge in the prices of petroleum products and the hike in electricity tariff.