The Oil and Gas Regulatory Authority (Ogra) has lowered gas prices by up to 10% for public utilities starting from the financial year 2024-25, which starts in July.
The Oil and Gas Regulatory Authority (Ogra) has lowered the gas prices for public utilities starting from the fiscal year 2024-25. This reduction was made while determining the revenue needs of the Sui gas companies for the upcoming year. For Sui Northern Gas Pipelines Limited (SNGPL), the average prescribed price was set at Rs1,635.90 per million British thermal units (mmBtu), which is Rs 179.17 per mmBtu less than before, a decrease of 10%.
Ogra calculated that the revenue shortfall from previous years was Rs580,585 million, which was less than SNGPL’s claim of Rs 862,612 million. This difference was referred to the federal government for a decision. The regulator also found that SNGPL’s total operating income for FY25 was estimated at Rs 691,877 million, which was higher than the revenue requirement of Rs607,403 million, resulting in a surplus of Rs66,524 million. To adjust for this surplus, Ogra reduced the prescribed price.
For Sui Southern Gas Company (SSGC), the average prescribed price was set at Rs1,401.25 per mmBtu, a reduction of Rs 59.23 or 4%. SSGC had a surplus of Rs 12,236 million in net revenue requirement, which Ogra aimed to eliminate by reducing the prescribed price.
Ogra has asked for advice from the federal government on gas sale prices for different categories, which will be notified once recommended by the government. Until then, the existing prices will remain.
Additionally, Ogra directed both SNGPL and SSGC to reduce costs, expedite recoveries from defaulters, and address issues such as gas theft and low gas pressure complaints from consumers. They were also asked to implement certain rules and agreements to improve efficiency and reduce losses.
