ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has recommended a significant hike in gas prices for both gas companies – Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) with effect from January 1, 2025, fulfilling a condition set by the International Monetary Fund (IMF) for timely notification of the gas tariff.
According to the decisions, OGRA recommended an increase of 8.71 percent in gas price for SNGPL against its 10.67 percent demand and a 25.78 percent hike for Sui Southern Gas Company Limited (SSGCL) against its 208.67 percent demand.
With these adjustments, the average gas price for SNGPL will rise to Rs1,778.35 per MMBTU, while the average price for SSGCL will increase to Rs1,762.51 per MMBTU.
The decision has been forwarded to the federal government for final approval.
The OGRA clarified that the implementation of the revised gas prices will depend on advice from the federal government, with the price hike likely to take effect from January 1, 2025.
The IMF had explicitly demanded the gas price increase as part of its conditions to ensure compliance with the loan programme.
Copyright Business Recorder, 2024
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