ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has approved significant increase in gas prices across the country.
As per report, the decision, sent to the federal government for final approval, will see an average increase of 25.78 percent (pc) for consumers in Sindh and Baluchistan, while consumers in Islamabad, Punjab, and Khyber Pakhtunkhwa will experience an 8.71pc rise.
Under the new tariff structure, the average gas price for Sui Southern Gas Company (SSGC) has been set at Rs1,762.51 per MMBTU, and for Sui Northern Gas Pipelines Limited (SNGPL), it’s Rs1,778.35 per MMBTU. These changes aim to address financial needs totalling Rs527.55 billion for SNGPL and Rs319.78 billion for SSGC, along with adjustments for prior receivables.
The companies had originally sought increases in gas prices as high as 208.67pc but were met with public hearings by OGRA last month. OGRA’s decision to forward the recommendations to the federal government for final approval means that a notification will be issued once the government grants its consent
The revision in gas prices comes amidst rising financial pressures on the gas companies, with SNGPL receiving approval to recover over Rs50 billion from previous adjustments, and SSGC allowed to recover Rs48.85 billion.
