ISLAMABAD:- The Oil and Gas Regulatory Authority (OGRA) has allowed a hefty increase of up to 45 percent in prescribed prices of natural gas for the upcoming fiscal year just couple of days after the massive hike in petroleum and electricity prices.
Based on 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).
As per the determination, the regulator allowed 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 had sought an increase in gas price by Rs. 1,079 per mmbtu (198 percent) against the revenue requirement of Rs. 597 billion for the upcoming fiscal year.
The financial impact of previous years’ shortfall of Rs. 265 billion i.e. Rs. 720.20 per mmbtu has been referred to the federal government for an appropriate policy decision and is, therefore, not made part of the instant determination, according to the OGRA notification.
The SSGC was 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 sent to the federal government for advice on category-wise sale prices. Any revision, as advised 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.