ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) Tuesday requested the federal government for advice on category-wise sale prices of gas. Till such time, the existing category-wise natural gas sale prices shall continue to prevail.
The regulatory authority will notify any revision in gas prices as advised by the federal government.
The Ogra has reduced the gas companies' demand for increase in gas prices for financial year 2021-22. Taking cognizance of high pendency of gas connections in gas utilities' system besides many incomplete development projects, the authority had directed gas companies to immediately proceed for installation of all on-going incomplete projects, as previously authorized. In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against significant number of gas pilferers/non-consumers, located in its franchise area so as to bring down its ever-increasing UfG.
The Ogra has determined the Estimated Revenue Requirement of SNGPL and SSGCL for financial year 2021-22. Both determinations have been sent to federal government for receipt of category-wise natural gas sale price advice as required under the OGRA Ordinance.
The Ogra has allowed SNGPL existing average prescribed price of Rs 599.84 per mmbtu. The financial impact of SNGPL's previous years' shortfall of Rs 254,108 million, ie, Rs 669.75 per mmbtu has been referred to federal government for an appropriate policy decision and is, therefore not made part of instant determination. Average increase in price is 14 percent.
In SSGCL case, the regulator has allowed existing average prescribed prices of Rs 725.42 per mmbtu. The company's revenue requirement is determined at Rs 248,614 million. Total average increase or decrease in prices is 7 percent.
Copyright Business Recorder, 2021