Ogra proposes countrywide reduction in gas prices
Business
The authority said that the proposal has been sent to the federal government, and a formal notification will be issued after government approval.
ISLAMABAD (Dunya News) - The Oil and Gas Regulatory Authority (Ogra) on Monday proposed reduction in gas tariff by 3per cent for Sui Northern and 8per cent for Sui Southern for financial year 2025-26.
The authority said that the proposal has been sent to the federal government, and a formal notification will be issued after government approval. The current gas prices will remain in effect until the notification is issued.
The final decision for the reduction will be taken by the federal government. In a statement, the authority said that it has determined the Review of Estimated Revenue Requirement (RERR) of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited for the fiscal year 2025-26.
Ogra proposed revised tariffs of Rs1,804.08 per metric million British thermal unit (mmbtu) for SNGPL and Rs1,549.41/mmbtu for SSGCL, reflecting reductions of 3pc and 8pc respectively.
Ogra, in its statement, said that it approved the reduction after "carefully reviewing the revenue requirement of SNGPL and SSGCL" and "rationalised the demand by optimising costs as well as revenues".
The impact of deferred cargoes in the case of Pakistan LNG Limited has been included to the benefit of gas consumers, it added.
"Ogra in pursuance of Federal Cabinet dated July 01, 2024 has adjusted Rs13,565 million in case of SNGPL and Rs47,315 million in case of SSGCL against previous shortfall/stock of gas circular debt," the statement read.
