Ogra okays up to 75.35pc increase in natural gas price.

ISLAMABAD -- The Oil and Gas Regulatory Authority (Ogra) on Wednesday allowed two gas companies - Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) - to hike their prices by 74.42pc and 75.35pc, respectively.

In its decision on the two companies' petitions, Ogra allowed SNGPL to raise its average prescribed gas prices for the current fiscal year by Rs406.28/mmBtu and SSGCL to increase its average prescribed gas rates by Rs499.28/mmBtu.

The two companies had asked the regulator for a hike of Rs1,294.02/mmBtu and Rs667.44/mmBtu, respectively, effective from July 2022.

Previously, the average prescribed gas price for SNGPL consumers was Rs545.89/mmBtu, which would now be Rs952.17/mmBtu. Similarly, the average prescribed gas price for SSGCL consumers was raised from Rs662.63/mmBtu to Rs1,161.91/mmBtu.

Ogra also fixed a uniform rate for all categories of consumers, including domestic, tandoors, commercial, general industries and export-oriented industries. However, the hike in tariff will affect domestic consumers the most, with some seeing their rates triple.

Ogra's decision has been forwarded to the federal government which is bound to advise the regulatory authority within 40 days on the minimum charges and the sale price for each category of retail consumers for notification in the official gazette.

'The federal government shall ensure that the sale prices so advised are not less than the revenue requirement [of the companies] determined by the authority,' Ogra said in the decision.

In...