- The revised gas prices for FY2025-26 by OGRA.
- RS534BN Back needed to settle for SNGPL.
- Final rates subject to government approval.
Islamabad: the oil and gas regulatory authority (OGRA) proposed on Tuesday revised gas prices for financial year 2025-26, recommending an increase in suis Northern Gas Pipelines Limited (SNGPL) and a reduction in Su Southern Gas Company Limited (SSGCL), from July 1, The news reported.
The final decision is now based with the federal government.
OGRA finalized the examination of the estimated income requirements (RERR) for the two companies for the 2010-25 financial year. According to determination, the sale price of gas prescribed for consumers in Punjab and Khyber Pakhtunkhwa, served by SNGPL, was increased by 6.57%.
Meanwhile, for Sindh and Balutchistan consumers as part of the SSGCL network, the price was reduced by 5.9%.
More specifically, OGRA proposed an increase of RS116.90 by MMBTU in the prescribed price of SNGPL, which brought it to Rs1,895.25 by MMBTU. Conversely, it recommended a decrease of RS103.95 per MMBTU for SSGCL, fixing the new rate to RS1,658.56 by MMBTU.
The regulator determined the Require requirement of Suit Northern to RS534.45 billion for the 201025-26 fiscal year and SUTHERN RS354.17 billion.
The SNGPL requested an increase of 58% in its gas price prescribed at RS2,803 per MMBTU, citing a income deficit of 207.4 billion rupees and the increase in gas costs.
He asked for a income requirement of 700.97 billion rupees, but OGRA granted RS534.46 billion, fixing the price to RS1.895.25 by MMBTU for the financial year 20125-26.
The proposed increase in the prescribed price of the SNGPL is mainly awarded to the financial charge of the RLNG diversion, the result of a decision of the federal firm on October 30, 2023.
OGRA has increased red flags on the exponential increase in these diversions, calling SNGPL to launch urgent consultations with the federal government to examine the management of gas supply in the light of sectoral energy demands, global contractual obligations and economic realities.
SSGCL had requested an increase of 135pc of its gas price prescribed to RS4 137.49 per MMBTU, against 1,762.51 of RS, citing a deficit in cumulative income of 498.76 billion rupees, including previous overlaps.
A summary of the proposed revisions was sent to the federal government for final approval. Once approved, Ogra will issue an official notification and new rates will be implemented accordingly.