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No respite for the already inflation-hit masses as the Oil and Gas Regulatory Authority (Ogra) has approval for another surge in gas tariffs as a strategy to counter a substantial shortfall of Rs98 billion affecting the nation’s economy.
This latest adjustment, effective from January 1, 2024, until June 30, 2024, adds to the challenges faced by citizens already struggling with unprecedented inflation rates. This marks the second alteration in gas prices within the ongoing financial year 2023-24.
The government’s decision impacts both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), with SNGPL experiencing a significant increase of 35.13 percent in tariffs and SSGCL’s rates elevated by 8.57 percent.
Ogra’s proposal on February 2 recommended a notable hike, pushing the average gas price to Rs1,590 per MMBTU, up from the previous rate of Rs1,291 established in June 2023. This adjustment is a response to pressure from the International Monetary Fund (IMF), urging biannual revisions to gas prices to alleviate the mounting circular debt.
Under Ogra’s recent decision, Sui Northern gas tariffs surged to Rs1,673.82 per MMBTU, a substantial increase from the previous rate of Rs1,238.68. Similarly, Sui Southern’s gas tariffs increased to Rs1,466.40 per MMBTU, up from Rs1,350.68 per MMBTU.
The people of the country are already in bad condition in terms of economic crunch. The expensive electricity and now the gas is being again hiked.
The people are questioning how much more the government will hike the gas tariff when they are not getting the proper gas supply.