OGRA revises gas utilities' revenue, prices

December 18, 2024 (MLN): The Oil and Gas Regulatory Authority (OGRA) has revised the revenue requirements and prescribed prices for the country’s two major gas utilities, Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).

For SNGPL, OGRA approved a revenue requirement of Rs527,548 million, significantly lower than the Rs580,744m sought by the utility. The average prescribed gas price has been set at Rs1,778.35/MMBTU, reflecting an 8.71% increase from the existing Rs1,635.90/MMBTU.

This hike falls short of the 10.67% increase requested by SNGPL.

Meanwhile, SSGC approved a revenue requirement of Rs319,817m, well below its Rs401,655m demand.

The average prescribed price for SSGC has been fixed at Rs. 1,762.51/MMBTU, marking a 25.78% rise from the current Rs. 1,401.25/MMBTU.

The increase is significantly lower than the 208.67% hike initially proposed.

Implementing these revised prices hinges on the Federal Government’s advice regarding category-wise gas tariffs. Until a decision is made, the existing sale prices will remain in effect.

These adjustments come as part of OGRA’s annual review process, ensuring the utilities' financial sustainability while balancing consumer affordability.

Copyright Mettis Link News