Staff Report
ISLAMABAD: In the latest of the bombshells the regulator frequently drops on the gas consumers, the Oil and Gas Regulatory Authority (OGRA) has recommended a 74 percent increase in the prescribed price of natural gas for the fiscal year 2022-23.
According to the details, the regulator allowed Sui Southern Gas Company (SSGC) to increase gas prices by 67.75 percent for the year 2022-23. It also allowed Sui Northern Gas Pipeline Limited (SNGPL) to increase prices by up to 74.42 percent.
The regulator also abolished the earlier applicable slabs for gas consumption and their respective rates and fixed the price at 952.17 per Million British Thermal Units (mmBtu) for the SNGPL consumers. Likewise, for the SSGC consumers, the prescribed prices have been fixed at Rs 1161.91/mmBtu.
A cursory look at the decision suggests that those who consume less and are almost poor consumers are most affected as their gas prices have tripled. And for the higher slabs, the prices have been reduced.
OGRA public hearing
The OGRA issued its decision after holding public hearings on the petitions of SSGC and SNGPL in November 2022, where both companies had demanded a substantial hike in their prescribed gas rates for the ongoing fiscal year to help them meet revenue demands.
SNGPL which is operating the gas network in Khyber-Pakhtunkhwa and Punjab sought Rs 1,294.02/mmBtu, and the Sui Southern Gas Company which feeds Balochistan and Sindh sought Rs667.44/mmBtu increase in the rates.
As per the latest decision of OGRA on their petitions, the prescribed gas rates for SSGC has been increased by 67.75 percent while for SNGPL, it has been increased by 74.42 percent. In absolute terms, for SSGC, the gas price has been enhanced by Rs469/mmBtu to Rs1,161.95/mmBtu. For Sui Northern Gas Pipeline Limited, the average price has been increased by Rs406/mmBtu to Rs952.17/mmBtu.
The regulator has conveyed its decision to the federal government in Islamabad. Now, the government would decide on the OGRA proposal within 40 days of this notification. If the government does not notify it, then it will automatically come into effect.
