ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday notified an increase in the price of RLNG by 3.87 per cent for October 2023, owing to the increase in the imported gas price globally.
On Monday, the government already increased the price of natural gas by 194 per cent with effect from November 1, 2023.
The Ogra attributed the price with RLNG Brent prices increase in the international market.
The new price of RLNG for consumers of the Sui Northern Gas Pipeline Limited (SNGPL) is $13.8716 per mmbtu, which was $13.3636 per mmbtu in September, an increase of $0.5081 per mmbtu or 3.80 per cent for the consumers of the SNGPL.
The price of Sui Southern Gas Limited (SSGC) is fixed at $13.3332 per mmbtu which was $12.8366 per mmbtu for September 2023. A raise of $0.4966 per mmbtu is recorded as compared with the previous month.
The government succeeded in importing nine LNG cargoes. Eight were imported under long-term contract and one was a result of spot bidding. The deficit on RLNG diversion of Rs210 billion to the domestic sector is anticipated during this winter.
The natural gas reserves of the country are depleting at a CAGR of 5-7 per cent. Petroleum Division has devised a tariff proposal for all consumer categories which intends to generate surplus revenues over the revenue requirements of gas companies to maximize coverage of anticipated diversion of RLNG to domestic consumers during winter months in the absence of any budgeted subsidy and industry tariff rationalisation, thus stopping the flow of circular debt.
Copyright Business Recorder, 2023
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