Gas price for Punjab, KP made dearer by 2pc

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has permitted the Sui Northern Gas Pipelines Limited (SNGPL) to increase its average gas price by Rs 13.42/MMBtu (or 2 percent) for the financial year 2020-21.

The increase has been made over the existing average sale prices of Rs631.41 per MMBtu. The new price will be Rs644.84/MMBtu.The SNGPL had requested Ogra to increase Rs123 per MMBtu. The SNGPL is feeding consumers in Punjab and KP provinces.

The regulator announced the increase in gas prices in a decision issued on Wednesday. The federal government will make the final decision to pass on the different increases for different categories of consumers. The prices for domestic consumers have been lower compared to other consumers, who bear cross-subsidy.

Earlier, the Ogra had allowed 5.6 percent increase in the gas price of consumers of Sui Southern Gas Company (SSGC), which caters to Sindh and Balochistan. Ogra has determined the Review of Estimated Revenue Requirement (RERR) of SNGPL for the financial year 2020-21 and has sent the same to the federal government for sale price advice. Any revision as advised by the federal government shall be accordingly notified by Ogra. Till such time, the existing category-wise natural gas sale prices shall prevail.

In a statement, Ogra said that it had significantly slashed the SNGPL’s demand for an increase in gas prices for FY2020-21. The reason for the reduction in price is stability in US$ exchange along with other allowances made by Ogra in respect of the revenue and capital expenditures.