ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has allowed an increase in gas prices by up to 14 per cent or Rs87 per unit for consumers of Sui Northern Gas Pipelines Limited (SNGPL) and 7pc or Rs55 per unit for those of Sui Southern Gas Company Limited (SSGCL) to meet their revenue shortfalls during the current fiscal year (FY22).
The regulatory body has sent both determinations to the federal government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance after determining the Estimated Revenue Requirement of SNGPL and SSGCL for FY22 under Section 8(1) of Ogra Ordinance, 2002, vide its decisions dated Aug 17, 2021.
The summary of revenue requirement determination, as claimed by SNGPL vis-à -vis that allowed by OGRA for FY22 includes he financial impact of SNGPL’s previous years’ shortfall of Rs254,108 million i.e. Rs669.75 per mmBtu has been referred to the federal government for an appropriate policy decision and is, therefore, not made part of the instant determination.
A comparison between SSGCL’s demand and that allowed for FY22 is as follows: The Ogra has reduced the gas companies’ demand for increase in gas prices for FY22. Moreover, taking cognisance of high pendency of gas connections in gas utilities’ system, besides many incomplete development projects, the authority has directed Sui companies to immediately proceed for installation of all ongoing or incomplete projects, as previously authorised.
Furthermore, taking cognizance of high pendency of gas connections in gas utilities’ system besides many incomplete development projects, the authority has directed sui companies to immediately proceed for installation of all ongoing and incomplete projects, as previously authorised.
In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against a significant number of gas pilferers and non-consumers, located in its franchise area so as to bring down its ever-increasing Unaccounted for Gas (UfG).
Through the above determination, the federal government has been requested for advice on category-wise sale prices. Any revision, as advised by the federal government, shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall continue to prevail.
