ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has proposed an average reduction of up to 8 percent in gas prices and submitted its recommendation to the federal government for final approval. Previously, Sui gas companies had requested price increases of up to 28.62 percent.
As outlined by OGRA, the gas tariffs for Sui Southern Gas Company (SSGC) will see an average decrease of 8 percent, while Sui Northern Gas Pipelines Limited (SNGPL) will experience an average cut of 3 percent.
This decision aligns with the revenue projections of these gas utilities for the fiscal year. The revised average rates are set at Rs 1,804.08 per MMBTU for SNGPL and Rs 1,549.41 per MMBTU for SSGC.
OGRA clarified that gas demand has been recalculated after optimizing costs and revenues for the companies. Additionally, the impact from deferred cargoes of Pakistan LNG has been incorporated to ensure consumer relief.
Adjustments amounting to Rs 13.565 billion for SNGPL and Rs 47.315 billion for SSGCL were also approved following directions from the federal cabinet.
OGRA further revealed that consultations with the federal government regarding category-based gas pricing are underway. The new pricing notification will be issued once finalized approvals are received. Until then, existing gas rates will remain applicable.
