Gas utility prices will not be reduced: OGRA

The Chairman of Ogra stated that there’s no chance of taking down gas utility prices any time soon as the energy assets in the country are running out.

In a session conducted by the Senate standing committee of cabinet secretariat chairman Oil and Gas Regulatory Authority (OGRA) Masroor Khan stated Pakistan’s resources of natural gas are running out and as a result, reducing the utility prices is not a possibility.

Chairman OGRA stated, OGRA measures the numbers and statistics and ranges a supposition on what prices the utility should be sold at.

He added that based on our report, it is up to the government whether to permit the price treks to the people and to what quantity.

The prices of gas utility are reviewed twice each year, and 90 percent of these prices is the cost of the gas itself, he said.

We don’t factor in other expenses in the tariffs, he said.

He further stated that the ex-refinery price of petrol is Rs94.38 and the freight margin is Rs3.65 for a liter.

On the contrary, the distribution margin is on petrol’s liter is Rs2.11 and the general sales tax is Rs11.28.

He further defined the profit margin per liter for the oil marketing companies to be Rs2.97.

Pakistan’s petrol rates are among the inexpensive in the district.

Cabinet body on energy permitted a concessional power tariff for customers during the winter season straddling over November 2021 to February 2022.

Federal Planning and Development Minister Asad Umar chaired a meeting and were certain that a concessional power tariff that would also include K-Electric consumers would be accessible during four months of winter- 01 November 2021 to 28 February 2022.

Furthermore, it was also directed in the meeting that the petroleum division deliver a mechanism for gas pricing from November to February.

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