The Oil and Gas Regulatory Authority (Ogra) has proposed to slash natural gas prices by 6% for Sui Northern (SNGPL) and 2% for the Sui Southern (SSGCL) consumers.
The regulator announced this after holding a public hearing with the two Sui Gas companies and statistical analysis of their data.
OGRA had issued its decisions regarding the gas distribution companies that had approached it to sanction them up to a 101 percent increase in prescribed gas prices with effect from July 1, 2020, to meet revenue requirements.
The regulator, under Section 8(1) of the OGRA Ordinance 2002, vide its decision dated July 13, 2020, and July 14, 2020, has determined the revenue requirement of the gas companies i.e., the Sui Northern Gas Pipeline Company Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) for FY 2020-2021, and has sent the same to the federal government for gas sale price advice in respect of each category of consumers under Section 8(3) of the ordinance.
After holding public hearings, the authority rejected their demand and reduced the prescribed gas price of SNGPL by Rs. 40.94/MMBtu (or 6.1 percent) and SSGCL by Rs. 18.30/MMBtu (or 2%).
OGRA has sent its decision to the federal government for notifying the new prices.
According to the details, SNGPL had demanded to increase the gas price to Rs. 1287.19 per MMBtu against the existing price of Rs. 664.25 per MMBtu. But OGRA decided to reduce the price to Rs. 623.31 per MMBtu.
SSGC had demanded to raise the price to Rs. 881.53 per MMBtu against the existing price of Rs. 796.18 per MMBtu. However, OGRA reduced the price to Rs. 750.90 per MMBtu, which is two percent less than the existing price.