By Staff Reporter
ISLAMABAD: Oil and Gas Regulatory Authority (Ogra) on Friday approved gas price hikes of 40 percent and 45 percent for consumers of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), respectively, for the fiscal year 2023-24.
SNGPL had initially requested a 286 percent hike, while SSGCL had sought a 42 percent increase.
Ogra said it had considered the revenue requirements of the gas companies and the cost of gas, which accounted for over 85 percent of the overall determined price.
The average prescribed price per mmbtu (million metric British thermal units) for SNGPL will now stand at Rs1,238.68, up from Rs823.57, while for SSGCL it will be Rs1,350.68, up from Rs933.45.
The new prices will take effect from July 1, 2023.
The final decision on the price hike will be taken by the federal government within 45 days. If the government does not take a decision, the proposed increase will be automatically implemented.
Ogra said the government had been requested to provide guidance on the sale prices for different categories of consumers.
“Any revision, as advised by the federal government, shall be accordingly notified by Ogra,” the regulator said in a statement.
Ogra said the increase was necessary to cover the rising cost of gas production and transportation.
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