OGRA Notifies New Tariff of Rs3,000 per MMBTU, Up from Rs2,750
ISLAMABAD: Gas consumers across Pakistan will not receive any tariff relief in the new fiscal year as the Pakistan Muslim League-Nawaz (PML-N) government declined to implement a cut proposed by the Oil and Gas Regulatory Authority (OGRA). Instead, OGRA announced an increase in liquefied petroleum gas (LPG) prices from July 1, 2024. According to the notification, the domestic LPG cylinder price has risen by Rs1.43 per kilogramme.
OGRA had initially recommended a reduction in gas prices by up to 10% for public utilities for the fiscal year 2024-25. However, the government maintained the existing prices and raised gas prices for general industry by Rs250 per million British thermal units (MMBTU). OGRA also notified a new tariff of Rs3,000 per MMBTU, up from Rs2,750 per MMBTU.
Despite OGRA recommending an average prescribed price of Rs1,635.9 per MMBTU for Sui Northern Gas Pipelines Limited (SNGPL) and Rs1,401.25 per MMBTU for Sui Southern Gas Company (SSGC), the government chose to maintain the current rates. OGRA noted that the federal government retains sole authority to set gas prices, considering socio-economic and sectoral policies.
Additionally, OGRA increased LPG prices, with the new price of a domestic cylinder set at Rs2,769. OGRA linked the LPG producer price to Saudi Aramco-CP and the US dollar exchange rate.
Story by Zafar Bhutta
