The Oil and Gas Regulatory Authority (Ogra) has announced an increase in the gas tariff, intensifying the financial burden on citizens grappling with soaring inflation. This adjustment addresses a substantial Rs98 billion shortfall, highlighting the significant impact on household and business expenses.
Effective retroactively from January 1 to June 30, this marks the second tariff escalation affecting both the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) with hikes of 35.13% and 8.57%, respectively.
Policy and Price Adjustments
Following Ogra’s recommendations, gas prices have witnessed an average increase of 23.16%, setting the new price at Rs1,590 per MMBTU. This measure aligns with the International Monetary Fund’s (IMF) directives for biannual reviews to mitigate the burgeoning circular debt, now exceeding Rs1,250 billion. Ogra’s recent decision underscores a significant price adjustment for SNGPL and SSGCL, with tariffs set at Rs1,673.82 and Rs1,466.40 per MMBTU, respectively.
The government faces a critical deadline to respond to Ogra’s determination, with automatic enforcement looming if no action is taken within 40 days. Amid these developments, officials indicate potential further increases, with decisive actions expected from the caretaker government to effectively ensure fiscal stability and address the revenue shortfall.
