Ogra ups gas tariff by Rs58 MMBTU

Shahrukh Syed

Islamabad—In a shocking development, Oil and Gas Regulatory Authority (Ogra) has increased the gas price for Sui Northern Gas Private Limited (SNGPL) by Rs57.89 per MMBTU and decreased the gas price for Sui Southern Gas Company Limited (SSGCL) by Rs60.12 per MMBTU.
However, despite the decrease in gas tariff for Sui Southern, the end gas consumers of the whole country will pay the increase in the gas tariff as according to the formula of the federal government the increase in gas tariff determined for the Sui Northern will be applied across the country, sources told Pakistan Observer. In addition, the regulator has also exposed the gas consumers to the additional financial burden of Rs9 billion that will be incurred on the various gas schemes that will be started in various pockets of the country.
The Ogra has finalized the operating income at Rs201 billion for Sui Northern and operating expenses at Rs161 billion in the financial year 2016-17 for Sui Northern. In the determination, the Ogra has fixed the revenue for Sui Northern at 225 billion.
The average prescribed gas price for Sui Northern has been jacked up from Rs422.74 per MMBTU to Rs480.83 and for Sui Southern; the price has reduced to Rs354.24 per MMBTU from Rs419.36 per MMBTU. Under the new formula of the federal government, the increase in the gas price fixed for the Sui Northern will be applicable for the end consumers across the country.
The additional amount that Sui Southern will collect from its consumers will be deposited to the Federal government in the head of Gas Development Surcharge.
Ogra has rejected the request of the Sui Northern seeking the collection of 10 percent from consumers in the head of unaccounted for gas (UFG). However, e Ogra not only maintained the UFG at 4.5 per cent, but also extended the penalty of Rs7 billion to the Sui Northern for not controlling the UFG. Likewise, Sui Southern has requested for UFG at 7 per cent, but Ogra has rejected it maintaining the UFG at 4.5 per cent. Rather the regulator has penalized the Sui Southern with the staggering amount of Rs13.8 billion.

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