ISLAMABAD: Petroleum prices across Pakistan are expected to decrease in the coming days, alongside a significant reduction in regasified liquefied natural gas (RLNG) prices — a development likely to bring relief to electricity consumers particularly in Karachi.
The Oil and Gas Regulatory Authority (OGRA) on Tuesday announced up to a 14% cut in RLNG prices for May. For Sui Northern Gas Pipelines Limited (SNGPL), the RLNG price at the transmission stage has been reduced by 12.42% to \$11.026 per mmBtu, while the distribution stage price has dropped by 12.51% to \$11.79 per mmBtu. For Sui Southern Gas Company Limited (SSGCL), the RLNG transmission price fell 13.62% to \$9.74 per mmBtu, and the distribution price declined 13.64% to \$10.87 per mmBtu.
This drop is attributed to a decline in delivered prices of LNG shipments. Despite the reductions, RLNG prices at distribution level remain significantly higher than Pakistan State Oil’s average delivered price of \$8.13 per mmBtu, due to system losses and additional margins.
On the petroleum front, prices of petrol and high-speed diesel (HSD) are expected to fall by around Rs3.5 and Rs7 per litre, respectively, for the next fortnight, subject to stable tax rates. The estimated decrease follows a drop in global oil prices and lower import premiums.
In Karachi, K-Electric has filed a petition with the National Electric Power Regulatory Authority (Nepra), seeking to retain part of the expected fuel cost savings to recover Rs14.6 billion in pending claims. However, KE consumers are still set to benefit from a Rs5.02 per unit refund next month due to fuel cost adjustments for March, amounting to Rs6.8 billion in relief. A public hearing on KE’s petition is scheduled for May 22.
Story by Khaleeq Kiani
