After signaling 8% cut, Ogra takes a U-turn, approves 7.14% hike in natural gas prices

• SSGC rate increases by Rs 118.47 per mmBtu, SNGPL by Rs 86.30.
• Ogra initially approved the reduction, the final decision lies with the government.
• Gas supply companies have been ordered to ensure uninterrupted supply during the winter.

The Petroleum and Natural Gas Regulatory Authority (Ogra) on Tuesday approved a hike of up to 7.14% in natural gas prices for the current financial year, strictly ruling out an earlier announced rate cut, ending hopes of relief for consumers.

In an earlier statement, an Ogra spokesperson had said the regulator had approved a cut of up to 8% in gas tariffs for consumers nationwide, with the final decision resting with the government.

The Ogra spokesperson, in a fresh statement, said the authority approved a 7.14% tariff revision for Sui Southern Gas Company (SSGC) and a 4.89% adjustment for Sui Northern Gas Pipelines Limited (SNGPL).

For SSGC, the change translates into an addition of Rs 118.47 per mmBtu, while the SNGPL rate is increased by Rs 86.30 per mmBtu.

With this decision, SSGC’s price now stands at Rs 1,777.02 per mmBtu and SNGPL’s at Rs 1,852.80.

In the previous shortfall, Ogra allowed an adjustment of Rs 60.88 billion for gas companies, the spokesperson added.

Meanwhile, Ogra has sought advice from the federal government on category-wise selling prices, saying any revision as advised by the government will be notified accordingly.

Until then, existing gas sales prices by category will continue to prevail.

Separately, Petroleum Minister Ali Pervez Malik directed utilities to ensure uninterrupted supply to consumers during winter.

During a meeting to discuss seasonal gas load management, the minister urged necessary measures to facilitate the public during the winter months.

Malik confirmed that the gas companies had received the required instructions in this regard.

According to a statement, the managing directors of SNGPL and SSGC briefed the minister about the availability of natural gas across the country.

The meeting also discussed the issue of internal RLNG links, the statement added.

Malik noted that domestic gas supply this year was “significantly better” compared to last winter.