The Oil and Gas Regulatory Authority (Ogra) has suggested lowering the pricing of gas delivered by Sui Northern and Southern gas firms after evaluating the income needs for the financial year 2024–2025
Ogra suggested 10% lower average gas prices for Sui Northern Gas Pipelines Limited (SNGPL) and 4% lower average gas prices for Sui Southern Gas Company (SSGC), against the wishes of the gas firms.
The national oil regulator proposed a reduction in the price of SNGPL gas to Rs1,635.90 mmbtu, or Rs179.17 per metric million British thermal unit (mmbtu).
In the meantime, it recommended lowering SSGC’s petrol prices by Rs59.23 per mmbtu, resulting in an average petrol price of Rs1,401.25 per mmbtu.
A spokesman for the regulatory body stated that Ogra has submitted its decision for approval to the federal government.
However, on March 18, SNGPL also asked Ogra to raise the price of gasoline by 147% following the SSGC.
The utility firm reportedly demanded that the new average petrol price be set at Rs 4,446.89 per mmbtu and sought a rise in petrol prices of Rs 2,646.18 per mmbtu.
Facing an expected revenue deficit of Rs189.18 billion, it has proposed to apply the raised gas price from July 1.
It should be mentioned that the SSGC has asked the regulator for a further increase in petrol prices, requesting a rise of Rs 274.40 per mmbtu.
The International Monetary Fund (IMF) demanded that petrol prices be increased, and on March 17, a month after the caretakers saddled the public with that expense, the SSGC asked the Ogra to further raise petrol prices starting in July 2024.
A 67% rise in the natural gas rate was approved by the interim administration and went into effect on February 1. In order to fulfil the IMF’s deadline of February 15, 2024, for raising petrol prices in accordance with structural benchmark requirements, the tariff was raised.
The SSGC had recommended the Ogra fix the average price of one mmbtu of petrol at Rs1740.80, citing an anticipated Rs79.63 billion revenue gap.
