ISLAMABAD: A demand of gas utilities to increase gas prices has been rejected by the Oil and Gas Regulatory Authority (Ogra), and the prices have been reduced by up to six per cent for the consumers.
Prescribed gas price of the SNGPL has been reduced by six per cent and the SSGCL by two per cent, according to the decision by the regulator.
The OGRA, under Section 8(1) of the OGRA Ordinance, 2002, vide its decision dated July 13, 2020 and July 14, 2020, has determined the revenue requirement of the gas companies i.e., the Sui Northern Gas Pipeline Company Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) for FY 2020-2021, respectively, and has sent the same to the federal government for gas sale price advice in respect of each category of consumers under Section 8(3) of the said ordinance.
The SNGPL had demanded to increase gas price to Rs1287.19 per mmbtu against existing price of 664.25 per mmbtu.
However, the regulator decided to reduce price to Rs623.31 per mmbtu, which is 106.5 percent less than demand and six percent less than the existing price.
The SNGPL had sought revenue of Rs433 billion for the year 2020-2021 but the regulator allowed revenue of Rs219 billion.
The SNGPL had claimed to disallow Rs750 million on account of the UFG adjustment but the regulator allowed Rs7 billion.
The company had requested the regulator to allow recovery of Rs73 billion for the LNG diverted to domestic and commercial consumers in winter seasons but the regulator did not allow it. The company sought Rs905 million for LPG air mix plants but the regulator did not allow this amount to recover from the gas consumers.
The UFG of the company stood at 10.19 per cent, and the Ogra allowed 6.3 percent.
The SSGC had demanded to raise price to 881.53 per mmbtu against existing price of 796.18 per mmbtu.
However, the Ogra reduced price to 750.90 per mmbtu, which is 17.4 percent less than demand and two percent less than the existing price.
The SSGCL had projected volume of the UFG at 11.15 per cent. However, the Ogra projected at 15.85 per cent.
There has been huge volume of 67476 mmcfd that would be on account of gas theft in year 2020-2021.
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