Staff Report
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has finalized the revenue requirements of Sui companies for the upcoming financial year 2023-24.
In its recommendations, OGRA has suggested an average prescribed price per MMBTU (million British thermal units) of gas, along with an increase in prices for the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).
For SNGPL, the average prescribed price per MMBTU has been set at Rs. 1238.68, with an increase of Rs. 415.11 per MMBTU, resulting in a 50% price increase. Meanwhile, for SSGC, the average prescribed price has been determined as Rs. 1350.68, with an increase of Rs. 417.23 per MMBTU, reflecting a 45% price increase.
It is important to note that the average prescribed price determined by OGRA primarily includes the cost of gas, which constitutes more than 85% of the total determined price. The cost of gas is considered a pass-through item and is calculated based on the agreement between the Government of Pakistan and gas producer companies.
OGRA has formally requested the Federal Government for guidance on category-wise sale prices. Any revisions advised by the Federal Government will be duly notified by OGRA. Until then, the existing category-wise natural gas sale prices will remain in effect.
The determination of revenue requirements and price increases by OGRA will have implications for consumers and stakeholders in the natural gas sector. It is expected to play a crucial role in ensuring the financial sustainability and operational efficiency of the Sui companies, while also considering the economic impact on end-users.
Further developments regarding the implementation of the revised prices and any subsequent adjustments will be closely monitored as the Federal Government provides its guidance in this matter.
