ISLAMABAD: The PML-N government is about to drop another massive gas bomb on inflation-stricken masses as Oil and Gas Regulatory Authority (OGRA) has once again approved on average 50 per cent increase in gas prices for the financial year (FY) 2023-24 starting from July, it emerged on Saturday.
The Oil and Gas Regulatory Authority (Ogra) Friday concluded its determinations for two struggling state-run gas utilities and submitted them to the government for issuance of notification, The News reported.
For the upcoming fiscal year 2023-24, Ogra has calculated an estimated revenue requirement (ERR) of Rs697.4 billion to be collected from gas consumers.
The Authority has okayed increase in the tariff of Sui Northern from the existing Rs823.57 per MMBTU to Rs1238.68 per MMBTU, while in the tariff of Sui Southern, from the existing Rs933.46 per MMBTU to Rs1350.68 per MMBTU.
The OGRA has approved hike in gas prices for the consumers of Punjab, Khyber Pakhtunkhwa (KP) and Islamabad by 50 per cent while for the consumers of Sindh and Balochistan by 45 per cent.
The Sui Northern Gas Pipeline Limited (SNGPL), responsible for gas supply to consumers in Punjab and Khyber-Pakhtunkhwa (KP), will collect Rs358.4 billion.
Meanwhile, the Sui Southern Gas Company (SSGC), which supplies gas to consumers in Sindh and Balochistan, will collect Rs339 billion.
The average prescribed price determined by Ogra for SNGPL stands at Rs1,238.68/mmBtu, reflecting a 50% increase or Rs415.11 compared to the existing price.
Similarly, the average prescribed price for SSGC is set at Rs1,350.68/mmBtu, representing a Rs417.23 increase or 45%.
Ogra clarified that the average prescribed price mainly consists of the cost of gas, which accounts for over 85% of the determined price.
This cost is a pass-through item and is calculated based on the agreement between the Government of Pakistan and gas producer companies.
The decision made by Ogra has been forwarded to the government for notification, which is expected to occur within 40 days. Once implemented, the SNGPL and the SSGC will be authorised to collect hundreds of billions of rupees from consumers.
