Increased Gas Prices.
To counter the long-standing issue of circular debt in the energy and gas sector, the Oil and Gas Regulatory Au thority (Ogra) has petitioned for a price hike. The rec-: ommended price is prescribed at Rs 952/unit for the two companies, namely, the Northern and Southern Gas pipelines. There is also a fixed uniform rate for all types of consumers so that the effect is levelled. However, this is likely to affect domestic consumers the most as their rates will triple. At the moment, the federal government calls the shots but if no decision is reached in 40 days, the average price will be applied to all categories of consumers. It has also been stated that the sale prices proposed are not less than what is required. This hike is a difficult solution but necessary to tackle the amount of circular debt in the industry. For example, Sui Northern Gas Pipelines Limited quoted a revenue shortfall of Rs 178.814 billion in addition to the Rs 295.268 billion in previous years. A similar development was experienced last year when Ogra...
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