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Thursday, May 23, 2024

OGRA approves 45% hike in gas prices

The decision has been taken to meet revenue requirements of the two gas utilities, SNGPL and SSGCL.

Just a day after a massive increase in the price of petroleum products, the Oil and Gas Regulatory Authority (Ogra) on Friday approved a 45 per cent increase in the prescribed prices of natural gas from July.

The decision has been taken to reach a staff-level agreement with the International Monetary Fund (IMF) to strengthen the country’s fragile economy.

Based on the Determination of Estimated Revenue Requirement (DERR), a 45 per cent increase has been approved for the Sui Northern Gas Pipelines Limited (SNGPL) for the financial year 2022-23.

Meanwhile, for Sui Southern Gas Company (SSGC) a 44% hike has been notified.

The regulator has set an average prescribed for SNGPL at Rs854.52 per million British thermal units (mmBtu), up by Rs265 per unit or 45pc higher.

The company demanded a 198pc (Rs1,079 per unit) increase in its prescribed price to secure Rs597bn in revenue, but the SNGPL allowed annual Rs260bn revenue.

Govt raises petrol price to Rs209.86 per litre

Meanwhile, the government is removing subsidies on commodities to reach a staff-level agreement with the IMF, increasing the burden of inflation on the people of Pakistan.

On Friday, it moved up the price of petrol by Rs30 to Rs209.86, just a few days after the government hiked the petroleum prices by the same amount.

Read more: High petrol price forces govt to slash its fuel quota

In a press conference, Finance Minister Miftah Ismail said Prime Minister Shehbaz Sharif has approved hiking the price of petrol, diesel, and light diesel by Rs30 per litre. In contrast, the kerosene oil price went up by Rs26.38 per litre, effective from June 3.

NEPRA jacks up electricity tariff by Rs7.9 per unit

The National Electric Power Regulatory Authority (NEPRA) has raised the basic power tariff by Rs7.9078/kWh for the next fiscal year 2022-23.

The decision has been taken to comply with IMF’s conditions and is in line with the power distribution companies’ requests. The basic power tariff right now is Rs16.91 per unit. With an increase of Rs7.9078 per unit, it will be more than Rs24 per unit.

Read more: Citizens report 14 hours loadshedding after new govt