ISLAMABAD, June 20: The government is in a quandary as how to reduce the difference between the prescribed gas prices of the SNGPL and SSGCL, so that consumers could get a uniform tariff throughout the country.

Documents made available to Dawn suggest that the difference between the prescribed prices of the two utilities was so high that when calculated on actual basis, the sale price of Sui Southern Gas Company Limited (SSGCL) would be at least ten times higher than that of the Sui Northern Gas Pipelines Limited (SNGPL).

According to preliminary evaluation of separate petitions provided to the government by the Oil and Gas Regulatory Authority (Ogra), the two companies needed increase in their prescribed prices by Rs20.75 per MMBTU (Million British Thermal Unit) in case of SSGCL and Rs2.22 per MMBTU in the case of SNGPL from start of new fiscal year, says an official summary submitted to the cabinet.

Ogra has recently completed the public hearing of tariff petitions of the two utilities and expected to send its final recommendations to the government within the next few days.

The reason of difference in the increase of prescribed prices is the cost of gas purchase per unit by the two companies. The cost of gas purchase constitutes more than 80 per cent of the total prescribed price of the companies.

“Under the circumstances the prescribed price of SSGCL’s consumers may exceed their existing sale price by 16 to 18 per cent and while 2 to 3 per cent for SNGPL’s consumers.

Under section 8(4) of the Ogra Ordinance, 2002, “the prescribed price shall become the sale price, if it exceeds the latter”, says the summary.

In view of the sensitivity of the issue, the economic coordination committee (ECC) of the cabinet recently directed the Ogra to conduct a study as to how the prescribed prices of the two utilities could be brought at par.

The summary says that the price of gas had been earlier kept uniform all over the country irrespective of location.