The Oil and Gas Regulatory Authority (OGRA) has approved a 6.6 percent increase in prescribed gas prices for the next fiscal year, paving the way for the collection of an additional Rs. 890 billion in tax revenue from consumers.
According to the new revenue requirements set by OGRA, Sui Southern Gas Company Limited (SSGCL) will need to generate Rs. 354 billion, while Sui Northern Gas Pipelines Limited (SNGPL) is tasked with raising Rs. 535 billion.
Currently, the average consumer gas price stands at Rs. 1,770 per mmBtu. To meet the higher cost structure of SNGPL, a price hike of Rs. 125 per unit will be necessary from July 1. This adjustment would bring the per unit prescribed price to Rs. 1,895, which, under existing policy, must be adopted nationwide as a uniform consumer tariff.
The difference between this uniform tariff and the lower prescribed rate for SSGCL will be collected as a Gas Development Surcharge.
OGRA has forwarded its recommendations to the federal government, which will make the final category-wise pricing decisions in accordance with Section 8(3) of the OGRA Ordinance. The government retains the authority to adjust consumer-end prices, provided the revenue targets set by OGRA remain unaffected.
