“The Oil and Gas Regulatory Authority (Ogra) announced on Friday a 50% increase in gas prices for the consumers of the Sui Northern Gas Pipeline Limited (SNGPL) and 45% for the consumers of the Sui Southern Gas Company Limited (SSGCL) for 2023-24.
The SNGPL had sought an increase of 286% or Rs2,206.19 per mmbtu for the financial year 2023-24. However, Ogra allowed Rs415.11 per mmbtu increase, amounting to a 40% hike in gas tariff.
On the other hand, the SSGCL had sought an increase of 42% or Rs388.01 per mmbtu, but Ogra allowed a 45% increase, which meant the regulator allowed Rs417.23 per unit increase in gas prices. The prescribed price stood at Rs1,350.68 per unit.
Ogra said in a statement that it determined the revenue requirements of the gas companies for FY 2023-24. It pointed out that the average prescribed price determined by Ogra mainly comprised the cost of gas, which constituted approximately over 85% of the determined price.
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The average prescribed price per mmbtu was recommended as Rs1,238.68, and the increase was Rs415.11 or 50% for the SNGPL. The average prescribed price for the SSGCL was determined at Rs1,350.68, and the increase was Rs417.23 or 45%, it said.
The regulator said that the cost of gas was a pass-through item and had been calculated in accordance with the agreement signed between the government of Pakistan and the gas-producing companies.
The federal government had been requested 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,” it added.”