Ogra recommends an increase of up to 7.14% in natural gas prices

• SSGCL may increase prices by Rs 118.47.
• SNGPL could charge Rs 86.3 extra per mmbtu.
• Gas supply companies were ordered to ensure uninterrupted supply.

The Oil and Gas Regulatory Authority (Ogra) has proposed an increase of up to 7.14% in natural gas prices for the current financial year.

As per Ogra’s decision, Sui Southern Gas Company Limited (SSGCL) may see prices rise by Rs118.47 per million British thermal units (mmbtu) to Rs1,777.02 from the existing Rs1,658.55/mmbtu.

Sui Northern Gas Pipeline Limited (SNGPL) could charge Rs86.3 more per mmbtu, pushing its tariff to Rs1,852.80 from the current Rs1,766.50/mmbtu.

Notably, in their submissions to Ogra for the financial year 2025-26, SNGPL had sought an average increase in gas price of 28.62%, or Rs 505.64 per mmbtu, while SNGPL had sought an increase of 21.82%, or Rs 361.87 per mmbtu. The News reported on Tuesday.

Both state-owned companies reported a combined deficit of over Rs 77 billion to cover rising costs and system inefficiencies. SNGPL has projected a revenue shortfall of Rs 52.958 billion due to higher RLNG import costs, operating expenses and depreciation. It proposed an increase of Rs 189 per mmbtu for domestic gas and Rs 316.64 per mmbtu for RLNG services.

SSGCL sought Rs 125.41 per mmbtu for domestic gas, Rs 178.59 per mmbtu to recover earlier shortfalls and Rs 57.87 per mmbtu for RLNG cost.

While, Ogra issued a press release saying, “Ogra has carefully reviewed the revenue requirement of SNGPL and SSGCL and rationalized the demand by optimizing costs as well as revenue.

Additionally, the impact of deferred loads in the case of Pakistan LNG Limited has been included for the benefit of gas consumers. Accordingly, the average prescribed price for FY2025-26 of SNGPL & SSGCL has been provisionally fixed at Rs 1,804.08/mmbtu and Rs 1,549.41/mmbtu for FY2025-26 thereby reducing the price by 3% and 8% respectively to protect consumer interest as per consumer prescribed price. discipline.

The statement said that Ogra, as per the decision of the federal cabinet taken on July 1, 2024, adjusted Rs 13,565 million (Rs 48.71 per mmbtu) in case of SNGPL and Rs 47,315 million (or Rs 227.62 per unit in case of SSGCL) against previous gas shortfall.

The regulator has asked the federal government for advice on selling prices by category. Any revision as proposed by the federal government will be notified accordingly by Ogra. Until then, the existing gas sales prices by category will continue to prevail.

However, the Petroleum and Natural Gas Regulatory Authority (OGRA) has clarified that no change in gas prices has been approved with its recent determination.

In a statement issued today, Ogra said that some channels created a wrong impression by suggesting that gas tariffs had been revised.

“No change in natural gas prices has been approved as per the recent determination,” the statement added.

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.