OGRA Allows Hike in Gas Prices Up To 25.7%
Staff Report:
Oil and Gas Regulatory Authority (OGRA) has allowed the gas utilities to increase gas prices up to 25.78 percent for the financial year 2024-25.
Oil and Gas Regulatory Authority (OGRA) has determined an increase of 25.78 percent in the prescribed prices of Sui Southern Company Limited and 8.71 percent for Sui Northern Gas Pipeline Limited (SNGPL) for FY 2024-25, said OGRA in two separate decisions issued here Tuesday.Punjab Govt approves CM Dialysis Program Card
Both determinations have been sent to Federal Government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance, said a decision issued by OGRA here.
Oil and Gas Regulatory Authority (OGRA) has determined a hike of Rs 361.26 per MMBTU or 25.78 percent in the prescribed gas prices of Sui Southern Gas Company Limited (SSGCL). According the decision, SSGCL had requested for a hike of 208.67 percent to Rs 4,325.24 per MMBTU from the existing Rs 1410.25 per MMBTU. However, the regulator has determined a hike of Rs 361.26 per MMBTU from the existing Rs 1410.25 per MMBTU to Rs 1762.51 per MMBTU.In its petition the SSGCL has projected revenue requirement of Rs 401.655 billion for FY 2024-25, however OGRA determined Rs 319.481 billion. Similarly, the company has sought Rs 502.981 billion as an adjustment for previous year revenue shortfall, however the regulator allowed Rs 48.853 billion Sale Revenue at current prescribed price.
For SNGPL, Oil and Gas Regulatory Authority (OGRA) has determined a hike of Rs 142.45 per MMBTU or 8.71 percent in the prescribed gas prices. According the decision, SNGPL had requested for a hike of 10.68 percent in the prescribed prices from the existing Rs 1635.90 per MMBTU to Rs 1810.38 per MMBTU. However, the regulator has determined a hike of Rs 142.45 per MMBTU from the existing Rs Rs 1635.90 per MMBTU to Rs 1778.35 per MMBTU. In its petition the SNGPL had projected revenue requirement of Rs 580.744 billion for FY 2024-25, however OGRA determined Rs 527.548 billion. Similarly, the company had not sought any adjustment for previous year revenue shortfall, however the regulator allowed Rs 50.803 billion.
Through the above said determination, Federal Government has been requested for advice on category-wise sale prices, said OGRA. Any revision, as advised by Federal Government, shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall continue to prevail, it added.
