The Oil and Gas Regulatory Authority (OGRA) announced a 50% increase in gas prices for the consumers of the Sui Northern Gas Pipeline Limited (SNGPL) and 45% for the consumers of the Sui Southern Gas Company Limited (SSGCL) for 2023-24.
Consumers can expect a potential 50% increased burden in natural gas prices in Pakistan starting from July for the fiscal year 2023-24 to meet the revenue requirements of the two gas utilities.
The decision made by the regulatory authority has been forwarded to the government for notification, which is expected to occur within 40 days.
Once implemented, the SNGPL and the SSGC will be authorized to collect hundreds of billions of rupees from consumers.
OGRA allowed Rs415.11 per mmbtu increase, amounting to a 40% hike in gas tariff as SNGPL had sought an increase of 286% or Rs2,206.19 per mmbtu for the financial year 2023-24.
Furthermore, SSGCL had sought an increase of 42% or Rs388.01 per mmbtu, but Ogra allowed a 45% increase, for which OGRA allowed an Rs417.23 per unit increase in gas prices. The prescribed price stood at Rs1,350.68 per unit.
The regulator in a statement said that the cost of gas was a pass-through item and had been calculated in accordance with the agreement signed between the government of Pakistan and the gas-producing companies.