Just days after a significant increase in petroleum and electricity rates, OGRA approved a 45 percent increase in natural gas recommended pricing for the 2018 fiscal year.
The regulator has forwarded separate revenue determinations for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited based on the Determination of Estimated Revenue Requirement (DERR) for the financial year 2022-23. (SSGC).
According to the decision, the regulator permitted the SNGPL to raise gas prices by Rs. 266.58 per MMBtu (45 percent), generating Rs. 261 billion in yearly revenue. For the 2019 fiscal year, the gas company requested a price rise of Rs. 1,079 per MMBtu (198 percent) against a revenue demand of Rs. 597 billion.
According to the OGRA notification, the financial impact of previous years’ shortfall of Rs. 265 billion, or Rs. 720.20 per MMBtu, has been referred to the federal government for an appropriate policy decision and is not included in the current determination.
The SSGC was granted a price rise of Rs. 308.53 per MMBtu (44 percent), generating Rs. 285.2 billion in annual revenue. The business has requested a 45 percent hike in gas prices, against a revenue requirement of Rs. 286.72 billion for the 2018 fiscal year.
The results have been forwarded to the federal government for guidance on sale prices by category. According to the announcement, any revisions recommended by the federal government would be communicated to OGRA. It went on to say that until then, the present natural gas sale pricing by category will continue to apply.