OGRA determines gas price at Rs 644.84 per MMBTU on SNGPL network

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Wednesday ‘provisionally’ determined the gas price at Rs 644.84 per MMBTU [Million British Thermal Unit] against each category of consumers on the network of Sui Northern Gas Pipelines Limited (SNGPL) for the fiscal year 2020-21.

Disposing of the SNGPL’s review petition for the Estimated Revenue Requirement for the year 2020-21, the authority also ‘provisionally’ determined the company’s shortfall in estimated revenue requirement at Rs 4,352 million, and the revenue requirement at Rs 228,703 million.

The company had pleaded to fix the gas price at Rs1, 404.92 per MMBTU with average increase of 123 per cent, while the authority determined the price at 644.84 per MMBTU with an average surge of 2 per cent.

OGRA has significantly slashed the SNGPL’s demand for increase in gas prices for the current year, mainly due to stability in Rupee & US$ parity ratio and other disallowances made in respect of revenue and capital expenditures.

The authority said it had sent the provisional determinations to the federal government for the sale price advice. “Any revision as advised by Federal Government shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall prevail.”