Sui Northern Gas Pipelines Limited (SNGPL) has approached the Lahore High Court (LHC), contesting the Oil and Gas Regulatory Authority‘s (OGRA) methodology for calculating the Return on Assets (ROA). This development highlights the ongoing disputes between SNGPL and OGRA regarding gas pricing and regulatory frameworks. Key Issues: Potential Implications: Story by Wasim Iqbal
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The government has slightly increased the price of petrol by Re1 per litre and high-speed diesel (HSD) by Rs7 per litre for the next fortnight, according to a press release issued by the Finance Division on Friday. The revision follows an assessment by the Oil and Gas Regulatory Authority (Ogra) in response to fluctuations in the international oil market. With the new adjustment, the price of petrol now stands at Rs257.13 per litre, while HSD is priced at Rs267.95 per litre. No changes were mentioned for light diesel oil and…
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ISLAMABAD: The government is set to collect over Rs55 billion in prior year adjustments (PYA) during FY25, following a Rs500/MMBtu increase in gas tariffs for captive power plants (CPPs), aligning with IMF-mandated reforms. The tariff hike from Rs3,000/MMBtu to Rs3,500/MMBtu has pushed the weighted average gas tariff to Rs1,722/MMBtu, with an expected annual average of Rs1,689/MMBtu, according to Hamdan Ahmed, an analyst at Optimus Capital Management. The Oil and Gas Regulatory Authority (OGRA) has also based its revenue estimates on an assumed oil price of $81.8/bbl, higher than the FYTD25…
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ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has called on the Petroleum Division for urgent support to finalise a gas cost equalisation arrangement with Sui Southern Gas Company Limited (SSGC) and to include the full financing cost of short-term RLNG borrowings in the RLNG price structure to ensure cost recovery. In a letter to the Director General (Gas) at the Petroleum Division, SNGPL’s Chief Financial Officer (CFO) reaffirmed the company’s commitment to meeting its financial obligations, including payments to Pakistan State Oil (PSO). The letter highlighted that accumulated payment shortfalls…
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KARACHI: The Oil & Gas Regulatory Authority (OGRA) has proposed measures to mitigate operational losses faced by refineries due to the sales tax exemption on petroleum products and suggested extending the deadline for signing upgrade agreements under the Brownfield Refinery Policy 2023. In a letter to the Petroleum Division’s Director General (Oil), OGRA highlighted that refineries have hesitated to finalize upgrade agreements, citing financial uncertainties arising from the sales tax exemption introduced in the current fiscal year’s finance bill. Proposed Recovery MechanismOGRA recommended that refineries submit detailed claims for operational…
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ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) is considering disconnecting Captive Power Plants (CPPs) from January 2025, a move requiring federal government engagement due to its complexities and economic impact. On Tuesday, OGRA finalized the Review of Estimated Revenue Requirement (RERR) for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for FY 2024-25. The determination has been forwarded to the federal government, which has 40 days to decide under the OGRA Ordinance 2002. Key Details:Revenue Impact: If CPP disconnections proceed, SNGPL’s revenue requirement would…
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ISLAMABAD: The Oil & Gas Regulatory Authority (OGRA) has recommended an increase of up to 26% in gas tariffs to generate approximately Rs847.33 billion during the current fiscal year. The proposal, forwarded to the federal government on Tuesday, aims to recover the full cost of gas and address the growing circular debt in the energy sector. For Sui Northern Gas Pipelines Limited (SNGPL) consumers in Punjab, Khyber Pakhtunkhwa, and other northern regions, OGRA suggested a price hike of Rs142.45 per million British thermal units (MMBTU), raising the average rate to…
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KARACHI: The Oil and Gas Regulatory Authority (Ogra) has granted approval for the export of an additional 80,000 metric tonnes (MT) of furnace oil to address surplus stock amid declining domestic demand. The new approval includes 50,000MT for Pak-Arab Refinery Limited (Parco) and 30,000MT for National Refinery Limited (NRL). Parco is authorized to export its allocation during the fourth week of December, while NRL will export 15,000MT each from Port Qasim and Kemari Port during the same period. This follows an earlier decision allowing Cnergyico Pakistan Limited (CPL) to export…
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ISLAMABAD: The Petroleum Division has prepared a framework for the sale of up to 100 MMCFD gas by Exploration and Production (E&P) companies to third parties through open auctions. The summary, finalized following an inter-ministerial committee decision led by Deputy Prime Minister Ishaq Dar, will be submitted to the Executive Committee of the National Economic Council (ECNEC) for approval. Initially approved by the Council of Common Interests (CCI) during the caretaker government of Anwar-ul-Haq Kakar, the framework permits E&P companies to sell up to 35% of their gas to third-party…
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KARACHI: The Oil and Gas Regulatory Authority (Ogra) has requested an official explanation from the Sui Southern Gas Company (SSGC) regarding charges related to geysers appearing on consumers’ gas bills. Ogra has asked SSGC to provide a detailed written response concerning the pricing of geysers and associated installation fees. The authority emphasized that consumers are not required to use SSGC’s contractors for installation and can handle it independently. Recently, SSGC began charging Rs2,085 for ‘conical baffles’ under its geyser campaign, aimed at improving safety and reducing gas consumption. Ogra advised…
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