OGRA cuts gas prices by 10% for SNGPL, 4% for SSGC for FY2024-25

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA), while determining the revenue requirements for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC), has reduced gas prices by 10% for SNGPL and 4% for SSGC for the financial year 2024-25.

According to OGRA’s determination, the average prescribed price for SNGPL has been set at Rs 1635.90 per Million British Thermal Units (MMBTU) of gas. This represents a decrease of Rs 179.17 per MMBTU, amounting to a 10% reduction from the previous rates.

Additionally, OGRA has addressed the financial shortfall claimed by SNGPL for previous years. SNGPL had claimed a shortfall of Rs 862.6 billion in their petition, but OGRA’s calculations have determined the shortfall to be Rs 580.5 billion.

For Sui Southern Gas Company (SSGC), OGRA has determined the average prescribed price at Rs 1401.25/MMBTU. This marks a reduction of Rs 59.23/MMBTU, which is a 4% decrease from the previous pricing.

OGRA has requested the federal government’s advice on category-wise sale prices, indicating that any revisions will be notified accordingly once the government’s recommendations are received. Until then, the existing category-wise natural gas sale prices will remain in effect. 

This approach ensures stability and continuity in gas pricing while allowing time for comprehensive policy development.

It is relevant to note that OGRA has requested the federal government to advise on category-wise sale prices. And, any revision, as advised by the federal government, shall be accordingly notified by OGRA while till such time the existing category-wise natural gas sale prices shall continue to prevail.

It is pertinent to mention that OGRA’s move to lower gas prices and address financial discrepancies has highlighted the OGRA’s proactive approach to managing the energy sector’s financial health. 

Similarly, the reductions in gas prices for both SNGPL and SSGC are expected to have a positive impact on consumers and industries reliant on natural gas, ultimately contributing to economic stability and growth in Pakistan. 

The decision has come as a relief for consumers who have been burdened by high gas prices, and it aims to stabilize the energy sector by providing a more affordable energy source.