OGRA recommends 74% increase in sui gas prices

SNGPL allowed to increase rate by 74.42%, SSGC by 67.75%

ISLAMABAD:

At a time when the people of the country are finding it hard to make ends meet due to skyrocketing inflation, the Oil and Gas Regulatory Authority (Ogra) is seeking to drop a new bomb as it recommended an increase of up to 74% in the natural gas price from July 1.

According to the recommendation, the Sui Northern Gas Pipelines Ltd (SNGPL) would be allowed to increase gas prices by up to 74.42% and the Sui Southern Gas Company (SSGC) by 67.75%.

Ogra’s decision will be implemented after the approval of the federal government. If the federal government does not approve it within 40 days, the decision will be implemented automatically.

Also read: SSGC seeks 45% hike in gas price

According to Ogra’s decision, an increase in gas price of Rs406.28 per mmbtu has been approved for the SNGPL and an increase of Rs469.28 per mmbtu for the SSGC.

The current average price of the SNGPL is Rs545.89 per mmbtu while after the implementation of Ogra’s decision, the new price would be Rs952.17 per mmbtu.

Similarly, the current price of the SSGC is Rs692.63 per mmbtu while the new price would be Rs1,161.91 per mmbtu.

Ogra’s decision will be applied after the approval of the federal government and if the Centre does not approve it within 40 days, the decision will be implemented automatically.