ISLAMABAD, Sept 28: The Oil and Gas Regulatory Authority (Ogra) has reduced prescribed prices of natural gas for all categories, but the decision will not effect any reduction in consumer tariff and will only provide windfall benefits to the government in the shape of higher gas development surcharge.
Ogra took the decision on the basis of the final audited accounts of the Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited, official documents available with Dawn suggest.
Through separate petitions filed in August, the two companies had sought revision of their revenue requirement for 2005-6.
Ogra has issued separate determinations in the current week for the two utilities.
The SNGPL had sought a reduction in its average prescribed price by Rs1.42 per MMBTU (million British thermal unit). Having heard the company’s arguments, Ogra reduced the prescribed prices by Rs2.18 per MMBTU.
Also, Ogra imposed a Rs765 million penalty on SNGPL for its failure to reduce line losses to less than six per cent. The company had reported a total of 6.59 per cent as unaccounted for gas (line losses). Ogra said it should be absorbed by the company.
The prescribed price for domestic consumers has thus been reduced by Rs7, Rs11, Rs17 and Rs22 per cubic meter for first, second, third and fourth category, respectively.
