The Oil and Gas Regulatory Authority (Ogra) has asked the government to issue advice regarding 36 per cent gas price hike for the current fiscal year 2016-17,

An Ogra official informed DawnNews that Ogra has written a letter to the prime minister, and ministries of finance and petroleum to seek necessary advice over its decision of 36% increase in the gas price for the current fiscal year 2016-17.

He said Ogra, in the light of its ordinance, is bound to issue gas price notification till November 15 even if the government does not issue the advice.

The source further said that the regulator itself cannot stop gas price hike on the verbal orders of some ruling elites.

“Government must issue final advice to Ogra regarding said gas price hike otherwise Ogra will have to use legal responsibility given under Ogra Ordinance,” the official said.

Earlier, Ogra in its decision regarding gas price for the ongoing financial year had passed on Rs31 billion burden to the gas consumers by approving hike for the Sui Northern Gas Pipelines Limited (SNGPL) and a cut for the Sui Southern Gas Company Limited (SSGCL) in their gas tariffs.

The regulatory authority had approved an increase in gas price by Rs57.89/MMBTU (Million British Thermal Unit) for the SNGPL and a decrease by Rs65.12/MMBTU for the SSGCL for the ongoing financial year.

It fixed gas tariff at Rs480.63 per MMBTU for the SNGPL and at Rs354.24/MMBTU for the SSGCL for the FY 2016-17. However, consumers of the SSGCL will bear an increase in gas price due to federal government’s formula in this regard.

It may be mentioned here that the gas price of the SNGPL will be applicable to all consumers of both gas utilities of the country under the said formula.