OGRA approves increase in gas prices for current fiscal year
The Oil and Gas Regulatory Authority (OGRA) has approved a hike in gas prices for the current fiscal year, with significant increases for both Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC), according to an official announcement.
Under the revised prices, gas tariffs for SNGPL customers will see an 8.71% increase, setting the average price at Rs 1,778.35 per MMBTU. Meanwhile, SSGC customers will experience a sharper rise of 25.78%, with the price reaching Rs 1,762.51 per MMBTU.
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The decision has been forwarded to the federal government for final approval, which will determine its implementation based on the government’s advice.
Initially, gas companies had requested a steep price hike of up to 208.67% to address their financial shortfalls. To discuss these demands, OGRA conducted a public hearing last month where stakeholders, including representatives from the gas companies and the public, presented their views.
The approved increase reflects a more moderate adjustment compared to the original requests. However, the hike could impact domestic consumers, industries, and businesses reliant on natural gas, potentially increasing production costs and utility bills.
