ISLAMABAD: According to the News, the Oil and Gas Regulatory Authority has recommended a reduction in gas prices supplied by Sui Northern and Southern gas companies for the financial year 2024-25.
Contrary to the gas companies’ requests, Ogra proposed a 10% decrease in the average gas price for Sui Northern Gas Pipelines Limited and a 4% reduction in the average price for Sui Southern Gas Company.
The national oil regulator suggests lowering the price of SNGPL gas by Rs179.17 per metric million British thermal unit (mmbtu), bringing it to Rs1,635.90 mmbtu.
Meanwhile, it proposed reducing the gas price of SSGC by Rs59.23 per mmbtu, aiming to establish an average gas price of Rs1,401.25 per mmbtu.
The spokesperson for Ogra confirmed that the regulatory authority has forwarded its decision to the federal government for approval.
In contrast, following SSGC’s request, SNGPL also approached Ogra on March 18, seeking a 147% increase in gas prices. As per the utility company’s appeal, they proposed a hike of Rs2,646.18 per mmbtu, advocating for a new average gas price of Rs4,446.89 per mmbtu.
Given an anticipated revenue deficit of Rs189.18 billion, they suggested implementing the revised gas price starting from July 1.
It is worth noting that SSGC also filed a request with the regulator for an additional gas price hike, proposing an increase of Rs274.40 per mmbtu.
On March 17, one month after the caretaker government imposed a gas price hike on the demand of the International Monetary Fund, SSGC approached Ogra seeking a further increase in gas prices starting from July 2024.
The caretaker government had endorsed a 67% rise in natural gas tariffs effective from February 1, in line with IMF’s requirement to hike gas prices as part of the structural benchmark criteria by February 15, 2024.
Citing an anticipated revenue deficit of Rs79.63 billion, SSGC urged Ogra to set the average price of one mmbtu gas at Rs1740.80.
