OGRA approves hike in gas prices

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has approved up to 2pc increase in gas prices for Sui Northern Gas Pipelines Limited (SNGPL) consumers.

According to details, OGRA on Wednesday proposed a hike in gas prices for FY21, which will be applied following the government's notification.

As per OGRA, the gas price for SNGPL consumers has been increased by Rs13.42 per MMBTU. SNGPL had requested OGRA to increase Rs123 per MMBTU.

The newly revised gas price for SNGPL has now been set at Rs644.59 per mmbtu.

According to OGRA, it has significantly slashed the SNGPL's demand for increase in gas prices for the current year, mainly due to stability in rupee and dollar parity ratio and other disallowances made in respect of revenue and capital expenditures.

The authority said it had sent the provisional determinations to the federal government for the sale price advice. "Any revision as advised by federal government shall be accordingly notified by OGRA. Till such time, the existing category-wise natural gas sale prices shall prevail."

Under Section 8 (4) of the OGRA Ordinance, the federal government is requested to advise the OGRA and if the government fails to advice within the said 40 days, then OGRA will be obligated to notify in the official gazette by prescribed price as determined by the authority.