National News

Ogra approves a 75.35 percent price hike for natural gas.

Price hike for natural gas.

The Oil and Gas Regulatory Authority (Ogra) approved two gas companies, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), to boost rates to 74.42pc and 75.35pc, respectively, on Wednesday.

Regarding the two petitions submitted by the firms, the court’s ruling. Ogra granted SNGPL permission to increase the authorized average gas price for the fiscal year. In addition to SSGCL hiking its specified gas rates by Rs499.28/mmBtu, which is currently in effect and is Rs406.28/mmBtu.

In July 2022, the two businesses asked the regulator to sanction increases in the amounts of Rs1,294.02/mmBtu and Rs667.44/mmBtu, respectively.

The previous cost of prescribed gasoline for SNGPL users was Rs545.89/mmBtu and would be Rs952.17/mmBtu. 

Ogra has also set a standard rate for all consumers, including commercial, domestic, tandoors general industries, and export-oriented industries. The increase in tariffs will impact the domestic market the most, with some consumers seeing their rates double.

Ogra informed the Federal authorities of her decision. Which will inform the regulator of the appropriate fee the government should impose in 40 days. The retail price for each class of consumer for inclusion in the government-published gazette.

“The federal government shall ensure that the sale prices so advised are not less than the revenue requirement [of the companies] determined by the authority,” Ogra declared in the ruling.

If 40 days pass without the federal government providing notice. Announcing and detailing the price determined by Ogra

SNGPL calculated that the income gap for the current fiscal year would be Rs178.814 billion in their appeal. In addition to the deficit of Rs. 295.268 billion from the prior fiscal year. They asked the price-controlling authority to boost tariffs by Rs 1,294.02/mmBtu. It mentioned air-mix project liquefied natural gases, the differential effect of RLNG diversion, and UFG (unaccounted in gas) adjustments.

At the present price of natural gas, the company Ogra calculated the income shortfall for FY23 to be Rs109.180 billion. It estimated the company’s total income as Rs306.245bn for the current fiscal year.

The regulator also set SSGCL’s requirement for revenue in FY23 at Rs327.227bn.

The previous time, Ogra determined a 45 percent increment on the pre-determined price that natural gas will be charged for in the fiscal year to satisfy SNGPL and SSGCL’s requirements for revenue.

The agency had referred the findings at the request of the federal government to get guidance on prices for gas sold to all categories of consumers. But, the federal government has yet to respond to the earlier determinations.

 

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