Islamabad: Oil and Gas Regulatory Authority (Ogra) has rejected a demand of gas utilities to increase gas prices and reduced prices up to 6 per cent for the consumers.
According to decision released by the regulator, prescribed gas price of SNGPL has been reduced by 6 per cent and SSGCL 2 per cent.
Oil and Gas Regulatory Authority (OGRA), under Section 8(1) of OGRA Ordinance, 2002, vide its decision dated July 13, 2020 & July 14, 2020, has determined the revenue requirement of gas companies i.e., Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for FY 2020-21 respectively and has sent the same to Federal Government for gas sale price advice in respect of each category of consumers under Section 8(3) of said Ordinance.
SNGPL had demanded to increase gas price to Rs/mmbtu. 1287.19 per mmbtu against existing Price of 664.25 per mmbtu.However, the regulator decided to reduce price to Rs 623.31 per mmbtu which is 106.5 % less than demand and 6% less than existing price.
SSGC had demanded to raise price to 881.53 per mmbtu against existing Price of 796.18 per mmbtu. However, Ogra reduced price to 750.90 per mmbtu which is 17.4% less than demand and and 2% less than existing price.
OGRA has significantly slashed the gas companies’ demand for increase in gas prices for FY 2020-21. The main reason for reduction in price is international oil prices along with other disallowances made by OGRA in respect of revenue & capital expenditures.