The Oil and Gas Regulatory Authority (Ogra) on Wednesday allowed two gas companies — Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) — to hike their prices by 74.42pc and 75.35pc, respectively.

In its decision on the two companies’ petitions, Ogra allowed SNGPL to raise its average prescribed gas prices for the current fiscal year by Rs406.28/mmBtu and SSGCL to increase its average prescribed gas rates by Rs499.28/mmBtu.

The two companies had asked the regulator for a hike of Rs1,294.02/mmBtu and Rs667.44/mmBtu, respectively, effective from July 2022.

Previously, the average prescribed gas price for SNGPL consumers was Rs545.89/mmBtu, which would now be Rs952.17/mmBtu. Similarly, the average prescribed gas price for SSGCL consumers was raised from Rs662.63/mmBtu to Rs1,161.91/mmBtu.

Ogra also fixed a uniform rate for all categories of consumers, including domestic, tandoors, commercial, general industries and export-oriented industries. However, the hike in tariff will affect domestic consumers the most, with some seeing their rates triple.

Ogra’s decision has been forwarded to the federal government which is bound to advise the regulatory authority within 40 days on the minimum charges and the sale price for each category of retail consumers for notification in the official 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 said in the decision.

In case the federal government did not advise within 40 days, the prices worked out by Ogra would be notified, it further stated.

In its petition, SNGPL had projected a revenue shortfall of Rs178.814 billion for the current fiscal year as well as Rs295.268bn in previous years and requested the regulator to raise prices by Rs1,294.02/mmBtu. It had cited liquefied natural gas air-mix project, differential impact of RLNG diversion and UFG (unaccounted for gas) adjustments.

However, Ogra worked out the company’s revenue shortfall in FY23 at Rs109.180bn at the applicable natural gas sale price. It determined the company’s revenue requirement to be Rs306.245bn for the current fiscal year.

Separately, the regulator determined SSGCL’s revenue requirement in FY23 at Rs327.227bn.

Last year, Ogra had determined a 45pc increase in the prescribed prices of natural gas for the 2022-23 fiscal year to meet SNGPL and SSGCL’s revenue requirements.

It had forwarded the determinations to the federal government for advice on gas sales price for each category of consumers. However, the federal government has not responded to the previous determinations.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A positive note
Updated 10 Feb, 2025

A positive note

With govt unable to press growth accelerator without upending fragile recovery, sufferings of low-middle-income households are unlikely to disappear soon.
Justice for all
10 Feb, 2025

Justice for all

ALONG with his domestic agenda, Donald Trump is busy ripping to shreds the post-World War II ‘rules-based...
Held back
10 Feb, 2025

Held back

IT is a crying shame how women are conspicuously absent from Pakistan’s civil services. Despite comprising half ...
Race against time
Updated 09 Feb, 2025

Race against time

While some bright spots emerged at Breathe Pakistan moot, we must streamline our climate governance.
Open door
09 Feb, 2025

Open door

THE door is still open for talks, National Assembly Speaker Ayaz Sadiq has reminded the PTI. What matters, however,...
Football suspension
09 Feb, 2025

Football suspension

ONCE again, Pakistan has been ousted from the global football family. FIFA recently suspended the Pakistan Football...