Ogra announces significant 19-22% hike in RLNG prices for March

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday announced a substantial increase of 19 to 22 percent in the price of regasified liquefied natural gas (RLNG) for March, applicable at the distribution stage for the two Sui gas companies.

This sharp rise follows less than a week after the government raised petroleum product prices by Rs55. According to Ogra's data, the main factors behind the RLNG price hike are higher terminal charges due to lower imported gas volumes and a minor uptick in the import price.

The latest increase is notably higher compared to recent months. In February, RLNG prices had seen a marginal 0.5 percent rise, while December and January recorded consecutive monthly reductions of 6 percent and 5 percent, respectively. October and November had together seen a cumulative increase of 4.4 percent.

The Karachi-based Sui Southern Gas Company Limited (SSGCL), which supplies gas to consumers in Sindh and Balochistan, reported system losses at the distribution stage of 12.55 percent, up from 10.6 percent two months ago. On the other hand, the Sui Northern Gas Pipelines Limited (SNGPL) serves Punjab and Khyber Pakhtunkhwa. The new RLNG prices will impact both companies' consumers for the month of March.

The notification comes at a time when energy costs are already under scrutiny due to recent hikes in petroleum prices. The rare scale of the RLNG price increase is expected to have a significant effect on end-users in the coming month.