December 17, 2019 (MLN): The Oil & Gas Regulatory Authority (OGRA) is likely to approve an increase in prescribed gas prices for different sectors, as per the latest Estimated Revenue Requirement (ERR) dated December 10, 2019.
According to the report prepared by AKD research, OGRA might raise the price of Gas for the Commercial sector by 31.6% to Rs. 1,688 per mmbtu, Industrial sector by 31.6% to Rs. 1,343 per mmbtu, Cement Factories by 31.6% to Rs. 1,680 per mmbtu, Fertilizer (Feed-Sector) by 135.6% to Rs. 707 per mmbtu, Fertilizer (Fuel-stock0 by 31.6% to Rs. 1,343 per mmbtu, Power sector by 31.6% to Rs. 1,084 per mmbtu and Captive Power Plant by 31.6% to Rs. 1,343 per mmbtu.
The report further noted that these prescribed prices are not applicable to consumer, but may result in a surge in the consumer prices to be announced in January 2020. If that happens, the State Bank of Pakistan will be forced to keep the policy rates unchanged for another three to six months.
