ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) on Tuesday decided to raise the prescribed price of natural gas for Sui Northern Gas Pipeline Limited (SNGPL) by Rs 116.90 per mmbtu and Rs 103.95 per mmbtu reduction in gas prices for Sui Southern Gas Company (SSGC) with effect from July 1, 2025.
Oil and Gas Regulatory Authority (OGRA) took decisions on Tuesday on the Estimated Revenue Requirement (ERR) both gas companies for fiscal year 2025-26. Both determinations have been sent to Federal Government for receipt of category-wise natural gas sale price advice in 40 days as per OGRA ordinance. Increase in prescribed price for SNGPL is mainly due to the impact of RLNG diversion made in pursuance of Federal Cabinet decision dated October 30, 2023 that include the cost of RLNG in the determination of revenue requirement so that appropriate and cost recovery measures could be taken by the government moving forward in advising category wise consumer sale prices.
The Authority has directed SNGPL to immediately take up the matter for review of gas supply management with Federal Government, taking into account the sectoral energy demand, international contractual obligations and macro-economic factors.
The petitioner (SNGPL) total operating income is estimated at Rs 509,814 million as against the net revenue requirement of Rs 534,457 million and thus there is shortfall of Rs 43 billion for its ERR for the said year, thereby determining the average prescribed price at Rs 1895.25 per mmbtu. SSGCL has demanded Rs 2398.90 per mmbtu raise in gas price, however, the authority has allowed Rs 103.95 per mmbtu reduction for the said year.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.