After massive hike in petrol prices twice in a week, and increase in electricity prices, now Oil and Gas Regulatory Authority (OGRA) on Friday allowed an increase of up to 45 percent in prices of natural gas for the upcoming financial year.
As per the Determination of Estimated Revenue Requirement (DERR) for the financial year 2022-23, the regulator has forwarded separate determinations on revenue requirements of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC).
The regulator authorized the SNGPL to increase gas price by Rs. 266.58 per mmbtu (45 percent), resulting in annual revenue of Rs. 261 billion. The gas company seeks an increase in gas price by Rs. 1,079 per mmbtu (198 percent) against the revenue requirement of Rs. 597 billion for the upcoming financial year.
The SSGC allowed a price increase of Rs. 308.53 per mmbtu (44 percent), resulting in annual revenue of Rs. 285.2 billion. The company had demanded to increase gas price by Rs. 313.73 per mmbtu (45 percent) against the revenue requirement of Rs. 286.72 billion for the upcoming fiscal year.
The determinations have been forwarded to the federal government for advice on category-wise sale prices. Any revision by the federal government shall be accordingly notified by OGRA, the notification said. It added that till such time the existing category-wise natural gas sale prices shall continue to prevail.