OGRA approves gas price reduction of up to 8pc

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has approved an average reduction of up to 8 per cent in gas prices and sent its recommendation to the federal government for final approval. Earlier, Sui gas companies had requested price hikes of up to 28.62 per cent.

According to OGRA, gas prices for Sui Southern Gas will be reduced by an average of 8 per cent, while Sui Northern Gas will see an average reduction of 3 per cent.

The decision was made based on the revenue requirements of gas companies for the current fiscal year. The new average prices are fixed at Rs1,804.08 per MMBTU for SNGPL and Rs1,549.41 per MMBTU for SSGC.

OGRA said gas demand was recalculated after improving companies’ costs and revenues, and the impact of Pakistan LNG’s deferred cargoes has been passed on to benefit consumers.

Adjustments of Rs13.565billion for SNGPL and Rs47.315billion for SSGCL have also been approved in line with the cabinet’s directives.

OGRA added that it has consulted the federal government on category-wise gas pricing. A notification will be issued once the new prices are officially approved. Until then, existing gas prices remain in effect.