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Tag: OGRA

  • OGRA notifies reduction in LNG prices

    OGRA notifies reduction in LNG prices

    The Oil and Gas Regulatory Authority (OGRA) has notified a reduction in liquefied natural gas (LNG) prices for the month of March.

    According to details, the authority has notified a price cut of $0.02 per mmbtu for Sui Northern Gas Pipelines Company Limited (SNGPL) and $0.02 per mmbtu for Sui Southern Gas Company (SSGC).

    The price of LNG on the SNGPL system has been set up at $9.59 per mmbtu, while the same on the SSGC system has been kept at $9.31 per mmbtu.

    It may be noted that the authority had last month announced a hike in LNG prices for the month of February. The prices of imported LNG were increased by $0.88 per mmbtu for SSGC and $0.89 for SNGPL.

  • Govt to amend OGRA ordinance

    Govt to amend OGRA ordinance

    The government is likely to introduce amendments to the Oil and Gas Regulatory Authority (OGRA) Ordinance 2002 for provinces to have representation in the regulatory body.

    According to a report by a local media outlet, the government, under the amendments, will appoint a vice chairman on rotation from amongst OGRA members of each province for a period of one year. At present, the authority has a chairman and three members – oil, gas and finance.

    In this regard, the Punjab government has opposed the extension in tenures of hired officials, adding that the chairman and provincial members shall have a non-extendable fixed term of four years.

    It may be mentioned that the KP government agreed with the proposed amendments on the condition that indigenous consumers are ring-fenced and the burden of imported gas (RLNG) consumers is not transferred to indigenous consumers.

    On the other hand, the government of Balochistan has also proposed a few amendments related to provincial entry points in the management structure of federal entities.

     

  • Private LNG import likely to start in April, May

    Private LNG import likely to start in April, May

    ISLAMABAD: The award of unutilised Liquefied Natural Gas (LNG) terminal capacity is currently in process, following which the private sector is likely to start the import of LNG in April or May.

    According to a senior official privy to petroleum sector developments, a similar trend of importing LNG through private firms may be seen in the future.

    At present, the official said, the re-gasification volume is at around 1,000 Million Cubic Feet per Day (MMCFD) against the total existing capacity of around 1,200 MMCFD gas.
    “So, the government has no serious concern with regard to any unutilised capacity and if there is any [unutilised capacity], it has auctioned it,” he said.

    The Oil and Gas Development Authority (OGRA) had recently granted the first-ever marketing licences to two companies for undertaking regulated activities with regard to the sale of natural gas and LNG. Besides, it issued two ‘provisional licences’ of supplying LNG through cryogenic bowzers to consumers, especially where a regular gas transmission network does not exist.

    Currently, the country’s indigenous gas production is around 3.7 BCFD against the demand of 6 BCFD to meet the requirements of more than 9.6 million consumers across the country.

    According to a recent report by OGRA, the gap between demand and supply of gas could increase by 5,389 MMCFD by 2029-30, if necessary measures are not taken to increase local exploration and production activities.

    Meanwhile, OGRA on Monday notified an increase of Rs1.84 per kilogramme in the price of Liquefied Petroleum Gas (LPG) for the month of March.

    According to a notification issued by the regulatory body, the new price stands at Rs159.73. After an increase of Rs21.78 per 11.8kg LPG cylinder for domestic consumers, which was previously being sold for Rs1,863, is now fixed at Rs1,884.

  • POL prices unchanged as PM rejects OGRA’s proposed hike

    POL prices unchanged as PM rejects OGRA’s proposed hike

    LAHORE: Prime Minister (PM) Imran Khan has rejected a summary of the Oil and Gas Regulatory Authority (OGRA) for increasing petroleum prices from about Rs6 to Rs7 per litre.

    The news was announced by Special Assistant to the Prime Minister (SAPM) on Political Communication, Dr Shahbaz Gill, in a tweet uploaded on Sunday. “OGRA proposed to increase the price of petroleum products from about Rs6-7 per litre. Prime Minister Imran Khan did not accept this proposal. There has been no increase in the prices of petroleum products. Despite the continuous rise in the prices of petroleum products in the world market, the prime minister did not allow it,” he wrote, along with a picture of the summary that the authority had presented.

    The authority had proposed to jack up petrol price by Rs7 per litre and high-speed diesel (HSD) by Rs6 per litre for the next 15 days; however, POL prices will remain unchanged till March 15.

    The current levy on petrol stands at Rs17.97 per litre, while that on diesel stands at Rs18.36 per litre.

    It may be noted that the prime minister had also rejected ORGA’s proposal to increase the price of petroleum products earlier in the month after the body forwarded him a summary, seeking an increase of Rs14.07 per litre in the price of petrol and Rs13.61 per litre in the price of high speed diesel from Feb 15.

    The authority had also recommended an increase in the price of kerosene oil by Rs10.79 per litre.

    However, the government has been tweaking with petroleum levy rates instead of GST as levy remains in the national exchequer while GST goes to the divisible pool taxes and thus about 57pc share is grabbed by the provinces.

  • OGRA proposes up to Rs7 per litre increase in petroleum prices

    OGRA proposes up to Rs7 per litre increase in petroleum prices

    ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Friday recommended the Petroleum Division to increase the price of petroleum products by up to Rs7 per liter from March 1.

    According to sources, OGRA, in its oil prices summary, proposed the government to jack up the petrol price by Rs 7 per liter and high-speed diesel (HSD) by Rs6 per liter for next fifteen days. The final decision on prices of petroleum products will be taken by the Ministry of Finance in consultation with the prime minister.

    “If the PM grants its approval to raise the oil prices then masses will find a new wave of inflation in the prices of essential commodities and fares of transport which in result will destabilize their monthly budget and their economic health as well,” said the sources.

    They added that the government can maintain the oil prices at current level if it decreases levy and taxes already imposed on oil prices.

    The current levy on petrol stands at Rs17.97 per litre, while that on diesel stands at Rs18.36 per litre.

    It may be noted that Prime Minister Imran Khan had earlier this month rejected ORGA’s proposal to increase the price of petroleum products.

    OGRA had forwarded a summary to the prime minister, seeking an increase of Rs14.07 per litre in the price of petrol and Rs13.61 per litre in the price of high speed diesel from Feb 15th.

    The authority had also recommended an increase in the price of kerosene oil by Rs10.79 per litre.

  • Wastage of flare gas causing massive losses to national exchequer

    Wastage of flare gas causing massive losses to national exchequer

    ISLAMABAD: Flare gas is currently being burnt in the air at various field sites of the country as the Oil and Gas Regulatory Authority (OGRA) has so far not allowed its utilisation for commercial purposes, it was learnt on Wednesday.

    According to sources, as many as 18 applications seeking licence for use of flare gas are pending with the OGRA for the last four years. But hindrances created by different functionaries of OGRA in this regard has so far caused around Rs40 billion loss to the national exchequer.

    “Unfortunately, wastage of flare gas is going unnoticed despite the fact that daily production of flare gas from different fields is approximately 100 Million Cubic Feet,” an insider said. “Flare gas could not be injected into gas pipelines due to delay in OGRA decisions in this regard.”

    As per the sources, CNG stations are among the main consumers of flare gas, as identified by the applicants seeking licence from OGRA for sale of flare gas at CNG stations. Similarly, Utilization of Flare Gas Guidelines, 2013, do not restrict utilization of flare gas in CNG sector. In addition, according to clause F (I) and G, flare gas can be sold to third party at a negotiated price mutually agreed specifications.

    However, different OGRA functionaries have so far raised serious reservations with respect to flare gas specifications, works related to compression at well-head/oil & gas field/site, transportation procedures, decanting of flare gas at CNG stations, specific design of equipment at CNG stations, and use of flare gas in CNG converted automobiles.

    According to documents, the total potential of flare gas conservation in the country is over 100MMCFD, while use of only 20MMCFD of flare gas for commercial purposes could help the exchequer earn around $300,000 per day or $109.5 million per year.

    It is pertinent to mention that OGRA Member (Gas) Muhamamd Arif, in a letter dated 11th February 2021, had requested the acting OGRA chairman to take necessary measures to control the damages caused to the institutional reputation, integrity and obligations of OGRA as regulator. He said that confusion created by different functionaries of OGRA over the issuance of flare gas licence has become big problem in spite of his best efforts.

    “There is no bar or restriction on use of flare gas, inert alia, in the CNG stations as long as flare gas meets pipeline specifications; compression system is certified by CIE and TPI, and travasi system/bower is certified by CIE etc.,” he noted.

  • Food inflation surges in KP

    Food inflation surges in KP

    PESHAWAR: The rising prices of flour, sugar, ghee and pulses in Peshawar’s open market have made it difficult for ordinary citizens to run their kitchens.

    In the open market, a 20kg bag of flour has gone up to Rs1,400, whereas the price of pulse (gram) has increased to Rs170, pulse mash to Rs260, ghee Rs270 per kg, and sugar Rs100 per kg.

    Citizens say that the federal and provincial governments claim to control inflation across the country on a daily basis, but in practice, neither the district administration nor the federal and provincial governments have succeeded in controlling inflation.

    According to Inam Khan, a resident of Peshawar, despite the government’s rejection of OGRA’s summary to increase the prices of petroleum products, neither the government nor the district administration has played an effective role in curbing inflation.

    On the other hand, shopkeepers say that the increase in the prices of groceries is also affecting their business. “How can we sell cheap if we buy expensive items? Rising inflation has exacerbated the plight of the low-income class,” said a shopkeeper.

    SAARC Chamber of Commerce and Industry Vice President, Haji Gulam Ali, said that the government has broken the record of the country’s 73-year history in inflation. “If the government does not control employment and inflation, people will be forced to take to the streets,” he said.

  • PM rejects OGRA’s proposal for hike in petroleum prices

    PM rejects OGRA’s proposal for hike in petroleum prices

    ISLAMABAD: In a bid to provide relief to the masses, Prime Minister Imran Khan on Monday rejected an Oil and Gas Regulatory Authority (OGRA) summary proposing an increase of Rs14.07 in petrol price.

    OGRA had proposed an increase of Rs14.07 in petrol price, Rs13.61 in price of high-speed diesel, Rs10.79 in kerosene oil and Rs7.43 in light diesel’s price.

    The hike was suggested in view of the global rise in the prices of petroleum products.

    The prime minister rejected the regulator’s summary, keeping in view the public relief, the PM Office said in a statement.

    The PM assured the people that the government would go to any extent to provide relief to them.

  • Massive hike in petroleum prices on the cards

    Massive hike in petroleum prices on the cards

    ISLAMABAD: The prices of petroleum products (POL) are likely to increase significantly from Tuesday, as the Oil and Gas Regulatory Authority (OGRA) has forwarded its summary in this regard to the Petroleum Division.

    According to sources, OGRA has recommended up to Rs16 per litre hike in petrol price and up to Rs14.75 per liter increase in the price of high-speed diesel (HSD) for the next 15 days. 

    Likewise, an increase in the prices of kerosene oil and light diesel oil (LDO) has also been suggested by OGRA, they added.

    Sources said that the final decision regarding oil prices would be made by Prime Minister Imran Khan. If the PM grants approval to the raise, then masses will find a new wave of inflation in prices of essential commodities and transport fares, they added.

    The new oil prices will come into effect from 16th February 2021.

    Sources said that despite OGRA’s working, the PM is expected to approve only Rs4 to Rs5 per litre hike in POL prices, since the government has the option to maintain/reduce oil prices by changing the rate of petroleum levy and other taxes imposed on oil prices.

    At present, petrol is available at Rs111.90 per litre, while HSD is being sold at Rs116.07 per litre in the open market. 

    It is pertinent to mention that under the government’s instruction, OGRA is required to calculate oil prices on the basis of 17pc general sales tax and maximum petroleum levy permissible under the law at Rs30 per litre on HSD and petrol. The government later announces a lower than OGRA-determined prices on political considerations. 

    However, if the government approves a hike in oil prices, then this will be the fifth increase in oil prices during the last two and half months.

    In the last 75 days, the government has increased petrol price by Rs11.21 per litre, HSD by Rs14.64 per litre, kerosene oil by Rs14.90 per litre and LDO by Rs16.37 per litre.

     

  • OGRA approves hike in gas prices

    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.

  • Imran Maniar takes charge as SSGC managing director

    Imran Maniar takes charge as SSGC managing director

    ISLAMABAD: Imran Maniar has taken charge as Managing Director (MD) of Sui Southern Gas Company Limited (SSGCL).

    This is for the first time in the last five years that a permanent MD has been deputed at SSGC.

    According to the SSGC spokesperson, the approval of the appointment was given by the board of directors.

    Maniar is an accomplished professional with more than 30 years of strong track record in building, leading and advising private equity and corporations in mergers and acquisitions, restructurings, turnarounds, capital market transactions, logistics, upstream and midstream operations, oil field  and engineering services. He has been prolific in managing start-ups and Fortune 500 companies in North and Latin America, Europe and Middle East.

    Before joining SSGC, Maniar held CFO positions at Marquard and Bahls AG, GL Noble Denton and Eagle Ford Oil and Gas.  He has also served as Manager Strategic Planning at Boardwalk Pipeline Partners, Partner at Millennium Ventures LLC and as an Analyst at Solvay. Maniar has a BS in Industrial Engineering from Purdue University, an MBA from Rice University and has received CFO training at the Stanford Graduate School of Business.

    It may be mentioned here that Oil & Gas Regulatory Authority (OGRA) has authorised Hydrocarbon Development Institute of Pakistan (HDIP) to carry out the inspections of industrial and commercial gas meters after consumers who filed a record number of complaints against over billing by the SSGC in gas utility charges.

    According to the details reported on the matter, OGRA has brought in HDIP to oversee the complaints made by consumers and inspect if indeed there’s an anomaly in gas consumed and bill charged.

  • Cabinet Division shortlists candidates for OGRA chief slot

    Cabinet Division shortlists candidates for OGRA chief slot

    ISLAMABAD: In a bid to fill the top position of the Oil and Gas Regulatory Authority (OGRA) chairman, the Cabinet Division has forwarded three names to Prime Minister Imran Khan and sought his approval in this regard.

    According to sources, the Cabinet Division, through a summary, has forwarded the names of Shahid Karim, Masroor Khan and Ammer Jadoon for the top position of ORGA.

    “If the PM Khan considers them as appropriate choices for the top position at OGRA, then the Cabinet Division will table a summary before the federal cabinet to choose one of the three shortlisted candidates,” an official explained. “After getting the cabinet’s approval, a notification for the appointment of OGRA chairman will be issued by the division.”

    Sources said of three shortlisted candidates, Shahid Karim was being considered as the favourite candidate for OGRA chairman, as he possessed the relevant qualification and experience in oil and gas fields.

  • OGRA authorises HDIP to inspect industrial, commercial gas metres

    OGRA authorises HDIP to inspect industrial, commercial gas metres

    ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Tuesday authorised the Hydrocarbon Development Institute of Pakistan (HDIP) to inspect and test industrial and commercial gas metres on the request of consumers.

    All the inspections in future would be carried out by the HDIP and respective Sui companies jointly, the authority said in a news release.

    OGRA said it took this decision under the Natural Gas Measurement (Technical Standards) Regulations, 2019.

    The authority also directed both the Sui Northern Gas Pipeline Limited and Sui Southern Gas Company to coordinate with the HDIP before initiating inspections, replacement or testing of meters carried out on request of industrial and commercial consumers.

  • LPG price increased by Rs10.3 per kg

    LPG price increased by Rs10.3 per kg

    ISLAMABAD: After back-to-back increases in fuel prices, the poor consumers are now faced with another setback, as Oil and Gas Regulatory Authority (OGRA) has increased the price of liquefied petroleum gas (LPG) by Rs10.37 per kilogramme for the month of February.

    According to ORGA notification, the price of domestic 11.8-kg LPG cylinder has gone up by Rs122, while that of commercial cylinder by Rs471. Resultantly, the domestic cylinder will now be available at Rs1,863 instead of Rs1,741, and commercial cylinder at Rs7,168 instead of Rs6,697.

    “OGRA hiked the LPG price by Rs8,870 per tonne for LPG producer companies,” the notification read. “LPG price in the international market jumped to $574 against $536, causing an increase in domestic prices of LPG.”

    Meanwhile, in a statement issued on Monday, LPG Industries Association of Pakistan Chairman Irfan Khokhar informed that the local LPG production stood at 735,460 metric tonnes whereas the industry imported 473,900 metric tonnes to meet its requirements in 2020.

    Annoyed with imposition of levy and high rates of other taxes, Khokhar demanded the government to waive these taxes in order to provide cheap LPG to the masses in the winter season.

    He stressed that the country is already facing a severe gas supply crisis as the shortfall has hit nine million cubic feet. “Insane policies and exorbitant taxes are negatively impacting the LPG industry; distributors are paying over Rs6 billion in taxes.”

    Noting that the government is mulling to impose taxes on LPG imported via Taftan border, he said such an illogical move would make LPG unaffordable for the masses.

    It may be noted that the federal government on Sunday had approved Rs2.70 per litre increase in the price of petrol. The price of diesel was hiked by Rs2.88 per litre; kerosene oil Rs3.54 per litre; and light diesel by Rs3 per litre for the first 15 days of February. This was the third consecutive hike in fuel prices since Dec 31st 2020.

  • OGRA proposes up to Rs12 hike in fuel prices

    OGRA proposes up to Rs12 hike in fuel prices

    ISLAMABAD: The prices of petroleum products in Pakistan are likely to go up yet again from February 1, as the Oil and Gas Regulatory Authority (OGRA) has recommended an increase of Rs12 per litre for petrol and Rs10 per litre for diesel.

    The final decision would be taken by the Ministry of Finance headed by Dr Abdul Hafeez Shaikh after consultation with Prime Minister Imran Khan.

    According to documents available with this scribe, OGRA prepared its summary on the basis of a levy of Rs30 per litre. Currently, the levy on petrol is Rs21.56 per litre and Rs23.9 per litre on diesel.

    The government can reduce the proposed increase to a very low level by not increasing the levy or it can maintain the current prices of petroleum products with a slight reduction in the levy.

    Last month, the government had increased the prices of POL products twice after every 15 days.

    On January 1, the price of petrol went up by Rs2.31 and diesel by Rs1.80, while on January 15, the government again increased petrol price by Rs3.20 and diesel by Rs2.95.