The Oil and Gas Regulatory Authority (OGRA) has approved a significant increase in gas prices. The new tariffs will affect consumers nationwide in the current fiscal year.
The average gas tariff has been raised by up to 7.14 per cent. This decision reverses an earlier indication of a potential price reduction.
For consumers in Islamabad, Punjab, and Khyber Pakhtunkhwa, prices have increased by 4.89 per cent. The Sui Northern Gas Pipelines Limited (SNGPL) will now charge Rs 1,852.80 per MMBtu.
This is an increase of Rs 86.30 from the previous rate of Rs 1,766.50 per MMBtu. For consumers in Sindh and Balochistan, the increase is 7.14 per cent. The Sui Southern Gas Company (SSGC) has been allowed an increase of Rs 118.47 per MMBtu.
The new tariff for SSGC consumers is now Rs 1,777.02 per MMBtu. This price hike comes as a surprise. OGRA had previously suggested an average 8 per cent reduction in gas prices.
The regulator had even proposed specific reductions for both northern and southern regions. The final decision to increase prices marks a significant shift from those initial projections.
Prime Minister Shehbaz Sharif recently addressed the nation’s gas supply challenges. He acknowledged the difficulties faced during the previous PDM government in 2022. He stated that the current administration has worked to improve the situation. The government is now issuing new connections for high-quality RLNG to the public.