OGRA Decides To Increase Gas Tariff Up To 74 Per Cent Since July 2022

The latest reports say that the Regulatory, in a surprising move, abolished the earlier applicable slabs of gas consumption and their respective rates and fixed the price at 952.17 per Million British Thermal Units (mmBtu) for SNGPL consumers and Rs1161.91/mmBtu for SSGC.

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-Jan 11^th, 2023) The Oil and Gas Regulatory Authority (OGRA) on Wednesday jacked up tariff for sui gas companies’ consumers up to 74 per cent effective from July last year amid sky-rocketing inflation.

The OGRA issued a notification and increased the tariff for the consumers of Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company (SSGC), commercial sector, tandoors [ovens]. The regulatory also increased tariff for captive power plants and general industries including export-oriented sector.

The move would badly affect the poor consumers as their gas prices went up contrary to the higher slabs for whom the prices went down.

OGRA made this decision after holding public hearings on the petitions of SNGPL and SSGC in November 2022 when both the companies demanded substantial increase in their prescribed gas prices for the current FY23 to meet their revenue targets.

SNGPL, operating the gas network in Punjab and Khyber Pakhtunkhwa, sought Rs1,294.02/mmBtu while SSGC which feeds Sindh and Balochistan sought Rs667.44/mmBtu increase.

Under the latest decision of OGRA, the prescribed gas prices for SNGPL have gone up by 74.42% while for SSGC, it has been increased by 67.75%.

In absolute terms, for SNGPL the average price has been increased by Rs406/mmBtu to Rs952.17/mmBtu. For SSGC too, the gas price has been enhanced by Rs469/mmBtu to Rs1,161.95/mmBtu.

The regulator has forwarded its decision to the Federal government which will now decide it within 40 days of this notification and these will automatically will come into effect if the government does not notify these prices.