OGRA approves 45% increase in gas prices

Sindh gas plan

Islamabad: A day after the massive hike in the prices of petroleum products, the Oil and Gas Regulatory Authority (OGRA) approved an increase of up to 45 per cent in gas prices.

Sui Northern Gas Pipelines Limited (SNGPL) has received a 45 per cent rise based on the Determination of Estimated Revenue Requirement (DERR) for the financial year 2022-23, while Sui Southern Gas Company (SSGC) has received a 44 per cent increase. The increased prices will go into effect on July 1st.

According to a notification published in this respect, after accepting an increase of Rs266.58 per MMBTU, the price of gas has now been set at Rs854.52 per MMBTU for SNGPL customers.

“While for SSGC consumers, the price of gas has been fixed at Rs1,007.82 per MMBTU after an increase of Rs308.53 per MMBTU,” the notification read.

The regulatory authority also stated that the financial impact of the previous year’s shortfall of Rs264,894 million, or Rs720.20 per MMBTU, has been forwarded to the federal government for an appropriate policy decision and is not included in the current determination.

The tough decision to increase the gas prices by OGRA followed the massive hike in the prices of petroleum products which witnessed a jump of Rs 30 per litre in a bid to revive the stalled IMF programme.

Read: Miftah confident to get IMF deal done in June

Govt increases petrol price by Rs30 per litre

The government on Thursday jacked up the price of petrol by Rs 30 per litre with immediate effect. Federal Finance Minister Miftah Ismail told a press conference that the IMF program could not move forward without raising the prices of petroleum products.

Read: Govt increases petrol price by Rs30 per litre