Ogra reduces RLNG sale price by 7% for October

The Oil and Gas Regulatory Authority (Ogra) has announced a 7% reduction in the sale price of Regasified Liquefied Natural Gas (RLNG) for Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) for October, citing system losses at around 13%. 

The sale price for SSGCL at the transmission stage has been slashed by 7.1%, reducing it to $12.47 per mmBtu for October from $13.42 in September. 

At the distribution stage, the price for SSGCL has also decreased by 7.11%, dropping to $12.46 per mmBtu from $13.42 last month.

In absolute terms, the reduction in RLNG prices amounts to a drop of $0.835 per mmBtu at SSGCL’s transmission point and $0.955 at the distribution point. 

For SNGPL, the reduction stands at $0.85 per mmBtu at transmission and $0.92 per unit at distribution.

At the same time, Ogra has proposed raising the sale margin for OMCs by Rs1.35 per litre, bringing it to Rs9.22 from Rs7.87 per litre for petrol and diesel. It also suggested increasing the dealers’ margin by Rs1.40 per litre, from Rs8.64 to Rs10.04. 

The proposed margin hike accounts for future expenses on digitalisation and automation of fuel pumps over the next three years, with 50 paise per litre allocated to OMCs and 25 paise per litre to dealers.

Ogra has recommended that the government approve these margin increases and decide whether they should be implemented immediately or in phases. 

It also highlighted ongoing collaborative efforts by the Federal Board of Revenue, the Ministry of Energy, and the oil industry to implement pump digitalization projects, with OMCs tasked with submitting monthly progress reports.