Ogra okays 45pc hike in gas prices

LAHORE: The Oil & Gas Regulatory Authority (Ogra) has allowed substantial increase of up to 45 percent in natural gas tariff.

Based on Determination of Estimated Revenue Requirement (DERR) for financial year 2022-23, Ogra on Friday determined 45 percent and 44 percent jump in tariff for Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company (SSGC) respectively.

As per the determination, Ogra allowed the SNGPL to increase gas price by 45 percent or Rs266.58/mmbtu. SNGPL sought an increase in gas price by Rs1,079/mmbtu against the revenue requirement of Rs597 billion for the upcoming fiscal.

On the other hand, SSGC was allowed gas price increase of 44 percent or Rs308.53/mmbtu. SSGC had proposed to increase gas price by Rs313/mmbtu while projecting revenue requirement for FY22-23 at around Rs286 billion.

Both determinations have been sent to the federal government for receipt of category-wise natural gas sale price advice. The financial impact of previous years' shortfall of Rs264,894 million i.e. Rs720.20/mmbtu has been referred to the federal government for an appropriate policy decision and is, therefore, not made part of instant determination.