Staff Report
ISLAMABAD:
Oil and Gas Regulatory Authority (OGRA) has approved an increase in gas prices by up to 14 percent for the consumers of Sui Northern Gas Pipelines Limited and only seven (07) percent for Sui Southern Gas Company Limited (SSGCL).
Oil and Gas Regulatory Authority (OGRA), under Section 8(1) of OGRA Ordinance, 2002, vide its decisions dated August 17, 2021, has determined the Estimated Revenue Requirement of SNGPL & SSGCL for Financial Year (FY) 2021-22.
The regulator has sent both determinations to federal government for receipt of category-wise natural gas sale price advice as required under Section 8(3) of the OGRA Ordinance.
According to OGRA, the financial impact of SNGPL’s previous years’ shortfall of Rs. 254,108 million i.e. Rs. 669.75/MMBTU has been referred to federal government for an appropriate policy decision and is, therefore, not made part of the instant determination. Similarly, OGRA has reduced the gas companies’ demand for an increase in gas prices for FY 2021-22. Furthermore, taking cognizance of high pendency of gas connections in gas utilities’ system besides many incomplete development projects, the authority has directed the sui companies to immediately proceed for installation of all ongoing/incomplete projects, as previously authorized. In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against significant number of gas pilferers /non-consumers, located in its franchise area so as to bring down its ever-increasing UFG.
Through the above-said determination, federal government has been requested for advice on category-wise sale prices. Any revision, as advised by federal government, shall be accordingly notified by OGRA. Till such time the existing category-wise natural gas sale prices shall continue to prevail.
