ISLAMABAD (Web Desk) – The Oil and Gas Regulatory Authority (OGRA) has recommended an increase of 36 percent in the gas price for the consumers ahead of winter season.
Consumers of both the gas utilities Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) would bear the burden of the price hike for the current fiscal year.
The Ogra has approved hike in gas tariff by Rs 57.89 per Million British Thermal Unit (MMBtu) for the SNGPL while the price of SSGCL has been decreased by Rs 65.12 per MMBTU, the official sources revealed. As per the Ogra Ordinance, the authority has moved the decisions to the petroleum ministry for implementation, The Nation reported.
To issue the notification of gas tariff increase, the Ogra has sought the advice of the petroleum ministry by November 15. In case the petroleum ministry failed to provide advice by November 15, Ogra under its Ordinance will implement average prescribed price for all the sectors.
Although the government has imposed ban on new gas connections but recently the PM has relaxed the policy and around 50,000 connections will be provided to the consumers. In the SNGPL jurisdiction, gas schemes of 5,500 kilometre will be erected in the constituencies of various parliamentarians. To fulfil the revenue requirements for the new gas connections, the Ogra has also approved Rs 9 billion for the SNGPL.