ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (Ogra) approved a new pricing formula on Wednesday according to which the price of Compressed Natural Gas (CNG) will be increased by up to Rs 4.81 per kilogram.

While the new mechanism will increase CNG prices by up to Rs 4.81, it will also bring operating costs and profits charged by gas stations down by Rs 15 per kilogram.

The regulatory authority approved the new pricing formula in light of the Supreme Court’s verdict earlier last week.

According to sources, CNG will now be priced Rs 4.81 per kg higher in Region 1 (Potohar, Khyber Pakhtunkhwa, and Balochistan), while the price would be raised by Rs 3.85 per kg for Region 2 (Sindh, Punjab, and its areas excluding Potohar).

According to details received by Dawn.com, Ogra has changed the name of the ‘Operating cost’ head to ‘Production cost’ and has brought it down from Rs 20.80 to Rs 5.75 per kg.

Meanwhile, the profit or margin charged by gas stations has been brought down from Rs 11.20 to Rs 5.28.

The Oil and Gas Regulatory Authority will present the new formula in the Supreme Court on Thursday for approval after which an official notification will be issued for the price revisions.