OGRA determines new gas tariff with 6pc decrease on SNGPL, 2pc SSGC networks

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Tuesday determined the revenue requirement of two state-owned gas companies, SNGPL and SSGC, decreasing the commodity tariff by 6 percent and 2 percent respectively for the Fiscal Year 2020-21.

The authority, under Section 8(1) of OGRA Ordinance, 2002, had determined the revenue requirement of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) and “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 said Ordinance,” OGRA Spokesman Imran Ghaznavi said in a press statement.

The SNGPL had demanded to fix the tariff at Rs. 1287.19 per Million British Thermal Unit (MMBTU) against the existing price of Rs. 664.25 per MMBTU, he said, adding the authority approved the rate of Rs. 623.31 per MMBTU, which was “106.5 pc less than the demand and 6pc less than the existing price.”

Whereas, the SSGC had asked for the commodity tariff of Rs. 881.53 per MMBU against the existing price of Rs. 796.18 per MMBTU, but OGRA allowed Rs. 750.18 per MMBTU for the current fiscal year, which was “17.4pc less than the demand and 2pc less than the existing price,” Ghaznavi said.

The authority, he said, had significantly slashed the gas companies’ demand for increase in gas prices mainly “due to reduction in international oil prices along with other disallowances made by OGRA in respect of revenue & capital expenditures.”