The Oil and Gas Regulatory Authority (Ogra) on Tuesday approved an increase of up to 7.14% in gas prices for the current fiscal year, formally ruling out an earlier proposal of tariff reduction and dashing hopes of relief for consumers.
As per the latest decision from the OGRA, there has been approved a 7.14% increase in Sui Southern Gas Company (SSGC) tariffs. Sui Southern Gas Company areas include Sindh, Balochistan, and parts of Southern Punjab.
Whereas, 4.89% upward adjustment for Sui Northern Gas Pipelines Limited (SNGPL). Sui Northern Gas Pipelines Limited areas include Punjab, Khyber Pakhtunkhwa, Azad Jammu & Kashmir, and the Islamabad Capital Territory.
For SSGC the revision translates into an addition of Rs 118.47 per mmBtu, taking its new average prescribed price to Rs 1,777.02 per mmBtu.
For SNGPL, the price has been increased by Rs 86.30 per mmBtu, raising its average prescribed price to Rs 1,852.80 per mmBtu.
Most importantly, the fresh decision by regularity authority vehemently contradicts an earlier statement. Which states that the authority had approved up to 8% reduction in gas tariffs for consumers across the country, subject to final approval by the federal government.
However, the new directives issued by the Ogra indicates that no such reduction is being implemented and that prices are instead being revised upward.
Separately, Minister for Petroleum Ali Pervez Malik has directed gas utilities to ensure uninterrupted gas supply during winter.
.Chairing a meeting on seasonal gas load management, Malik urged companies to take all necessary measures to facilitate the public and confirmed that instructions had been issued to both SNGPL and SSGC.
The managing directors of both companies briefed the minister on gas availability, RLNG domestic connections, and supply planning, with Malik noting that domestic gas supply this year is “significantly better” than last winter.
