ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has okayed significant increase in the gas prices by up to 45 percent in order to address the revenue shortfall of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for financial year 2022-23.
As per details, OGRA, in its Determination of Estimated Revenue Requirement (DERR) of SNGPL and SSGCL for FY 2022-23, has allowed 45 percent or Rs266.58 per Million British Thermal Unit (MMBTU) and 44pc or Rs308.53/ increase in gas tariff for SNGPL and SSGCL respectively. However, a final decision in this regard will be taken by the federal government.
OGRA, in its decision, said through the above said determination, the federal government has been requested for advice on category wise sale price. Any revision, as advised by the federal government, shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall continue to prevail, said OGRA.
Earlier, the SNGPL had demanded a 198% hike in gas prices while SSGCL sought a 45% jump in the gas tariff to meet its revenue requirement for FY 2022-23.
According to sources, this increase in the gas price will help SNGPL to meet its revenue requirement of Rs260.9 billion while with this determination the SSGC will be able to recover also Rs285 billion from gas consumers in FY 2022-23.
OGRA has also made it clear that the financial impact of the previous year’s shortfall of Rs264.8 billion i-e Rs720.20 per Million British Thermal Unit (MMBTU) had been referred to the federal government for an appropriate policy decision and is, therefore, not made part of the instant determination.
It is pertinent to mention that following the recent massive surge in the prices of petroleum products and the enormous hike in electricity tariff, this is a big blow to the inflation hit masses during the rule of Shehbaz Sharif led coalition government.
