The Oil and Gas Regulatory Authority (OGRA) has approved a 6.6% hike in prescribed gas prices, aiming to generate an additional Rs. 890 billion in tax revenue from consumers in the upcoming fiscal year.
According to the new revenue requirements, Sui Southern Gas Company Limited (SSGCL) is set to collect Rs. 354 billion, while Sui Northern Gas Pipelines Limited (SNGPL) will generate Rs. 535 billion.
With the average gas price currently at Rs. 1,770 per mmBtu, an increase of Rs. 125 per unit is needed starting July 1 to match SNGPL’s higher cost structure. In line with the uniform tariff policy, the government is expected to adopt the higher prescribed rate of Rs. 1,895 per mmBtu across the country. The difference between this rate and SSGCL’s lower cost will be recovered as a Gas Development Surcharge.
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OGRA has submitted its recommendations to the federal government, which will finalize the category-wise consumer pricing under Section 8(3) of the OGRA Ordinance. The government has the authority to adjust end-user prices while maintaining the revenue targets approved by OGRA.
