OGRA approves hike in price of gas by 45%

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has sent a summary to the government for final approval of the price hike.

According to the details, a statement issued by OGRA said that a summary of an increase of 45 percent for Sui Northern and 44 percent for Sui Southern was sent to the government.

According to the notification issued by OGRA, Sui Nadran approved to increase the price of gas to Rs 266 per MMBTU, after which the price of gas was fixed at Rs 854, 52 paisa per MMBTU.

In the notification, gas for Sui Southern is Rs 308.53 per MMBTU after making it more expensive, the price was fixed at Rs. 1007 per MMBTU. According to the notification, OGRA has allowed Sui Gas companies to add Rs 720.20 per MMBTU to meet the revenue shortfall of Rs 264.89 billion during previous years.

OGRA said in a statement that after taking a detailed look at the summary of revenue requirements claimed by Sui Gas companies for the next financial year 23-2022, it has decided to increase gas prices for both the companies. 

It is to be noted that a summary of the proposed increase has been sent to the federal government. Now the federal government has to decide at the policy level how much increase is to be passed on to the consumers.

It may be recalled that on June 3, the government announced an increase of Rs 30 per liter in the price of petrol, diesel, and kerosene. In this regard, the Federal Minister of Finance had said that the rise in the price of petrol and diesel has led to a slight increase in prices. However, the increase in the price of petrol will strengthen the rupee.  

On the other hand, Pakistan Tehreek-e-Insaf (PTI) leader and former federal minister Fawad Chaudhry made big predictions about inflation.

He said in a statement that the flour crisis is coming soon in the country. Fawad Chaudhry said that the economic crisis in Sri Lanka came first and the political crisis came later while the political crisis in Pakistan came first.

The PTI leader said that after the no-confidence motion, the rupee depreciated by Rs 24, lest we should not get any oil at all. The government increased the price of oil after the agreement with the IMF.