Ogra approves increase in tariff of gas

ISLAMABAD (INP): The Oil and Gas Regulatory Authority (Ogra) hiked the tariff for the Sui Northern Gas by 50 per cent and the Sui Southern Gas by 42pc on average, according to a report on Monday.
It means a Sui Northern gas consumer is going to pay an additional amount of Rs415.55 per MMBtu (Metric Million British Thermal Unit) while the increase in the case of Sui Southern stands at Rs417 MMBtu.
The move follows the federal cabinet last week approved a massive hike in electricity base tariff – Rs3.50 to Rs7.96 per unit – through circulation as Pakistan is moving ahead to meet the harsh IMF conditions under the $3 billion deal reached a stand-by arrangement.
Earlier, the National Electric Power Regulatory Authority (Nepra) had recommended at Rs4.96 increase in power base price and sent the summary to the Ministry of Energy for necessary action – a move that will place an additional burden of Rs3,495 on consumers.
On Monday, the regulatory authority approved the gas price hike and sent the matter to the government for issuing a notification as the IMF has made it clear that Pakistan would have to bridge the gap between the cost and revenue while stopping the practice of subsidizing the consumers.
The approval means the per MMBtu price for the Sui Northern consumers would reach Rs1,238,68 with the corresponding rate for Sui Southern standing at Rs1,350.68.
After the government notification, the tariff hike would come into effect from July 1, affecting all consumers – from domestic to commercial and industrial. The regulator determines the oil and gas prices on the basis of recommendations of distribution companies under sections 3 and 8 of the Ogra Ordinance and forwards the matter to the government for final approval.
It was in June that the proposal about the increase in the prices after determining the revenue needs for the year 2023-24 was originally sent to the government which had approved the hike and sent the matter to the Ogra for formally incorporate the new tariff. Now the government will notify the latest increase in the gas tariffs after the regulator acted accordingly.