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The Oil and Gas Regulatory Authority (OGRA) has approved an increase in gas prices for the current fiscal year.
According to OGRA’s decision, an 8.71% increase has been approved for consumers on the Sui Northern Gas Pipelines Limited (SNGPL) network, while a 25.78% increase has been approved for consumers of the Sui Southern Gas Company (SSGC) network.
The decision states that the average gas price for SNGPL consumers has been set at Rs 1,778.35 per MMBTU, whereas for SSGC consumers, the average gas price has been approved at Rs 1,762.51 per MMBTU.
OGRA has forwarded its decision to the federal government for approval. The final notification of the revised gas prices will be issued after the federal government’s confirmation.
It is significant to note that gas companies had initially sought an increase of up to 208.67%. OGRA conducted public hearings on these requests last month before finalizing its decision.
The International Monetary Fund–IMF–has set a deadline of February 15, 2025, for the issuance of the gas price notification. Government sources revealed that the IMF has linked this to its condition for biannual gas tariff adjustments, which must be implemented by the February deadline next year.
Since January 2023, the government has raised gas prices three times for domestic consumers, adding an additional burden of Rs 953 billion over the past two years.
In the previous coalition government, gas prices were increased once, while during the brief tenure of the caretaker government, prices were increased twice.
