Staff Report
ISLAMABAD:
The Oil and Gas Regulatory Authority (OGRA) has reduced gas prices by 10 percent for Sui Northern Gas Pipelines Limited (SNGPL) and by 4 pc for Sui Southern Gas Company (SSGC) for the financial year 2024-25.
As per the latest determination of revenue requirements, OGRA has reduced gas prices by 10 percent for Sui Northern Gas Pipelines Limited (SNGPL) and 4 percent for Sui Southern Gas Company (SSGC).
For SNGPL, the average prescribed price has been set at Rs. 1635.90 per Million British Thermal Unit (MMBTU) of gas. This new rate reflects a decrease of Rs. 179.17 per MMBTU, marking a 10 percent reduction from previous prices. In addressing the financial shortfall claimed by SNGPL for previous years, OGRA recognized a shortfall of Rs. 580,585 million, significantly lower than SNGPL’s claim of Rs. 862,612 million.
Similarly, for SSGC, the average prescribed price has been determined at Rs. 1401.25 per MMBTU, a reduction of Rs. 59.23 per MMBTU, equating to a 4 percent decrease from previous rates.
OGRA has sought the Federal Government’s advice on category-wise sale prices. Any revisions based on the government’s recommendations will be notified in due course. Until then, the current category-wise natural gas sale prices will remain in effect, ensuring stability and continuity in gas pricing.
This proactive approach by OGRA aims to manage the financial health of the energy sector while providing more affordable energy sources. The reductions in gas prices for both SNGPL and SSGC are anticipated to positively impact consumers and industries dependent on natural gas, thereby contributing to economic stability and growth in Pakistan.
The decision has been particularly well-received by consumers who have faced high gas prices in the past, offering much-needed relief and aiming to stabilize the energy sector.
For more details, OGRA’s comprehensive decision on revenue requirements and pricing adjustments for SNGPL and SSGC is available on their official website at www.ogra.org.pk.
