ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Tuesday reduced the price up to 6 per cent for consumers.
According to a notification issued by the regulator, gas prices for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have been reduced by 6 per cent and 2 per cent, respectively.
“The Oil and Gas Regulatory Authority (OGRA), under Section 8(1) of OGRA Ordinance, 2002, vide its decision dated July 13, 2020, & July 14, 2020, has determined the revenue requirement of gas companies i.e., SNGPL and SSGCL for FY21 respectively and has sent the same to the federal government for gas sale price advice in respect of each category of consumers under Section 8(3) of said Ordinance,” the notification read.
The SNGPL had demanded to increase the gas price to Rs1,287.19 per mmbtu against the existing price of 664.25 per mmbtu. However, the regulator decided to reduce the price to Rs623.31 per mmbtu, which is 106.5pc less than demand and 6pc less than existing price.
The SSGC had demanded an increase in gas price to Rs881.53 per mmbtu against the existing price of Rs796.18 per mmbtu. However, OGRA reduced price to 750.90 per mmbtu which is 17.4pc less than demand and 2pc less than the existing price.
The regulator has significantly slashed the gas prices against the companies’ demand for the increase in gas prices for FY2020-21.
The main reason for the reduction in price is international oil prices along with other disallowances made by OGRA in respect of revenue and capital expenditures.