The Oil and Gas Regulatory Authority (OGRA) Friday reduced gas prices from Rs 600 per Million British Thermal Unit (MMBTU) to Rs 400 per MMBTU for power houses in a bid to supply cheap electricity to industrial units aimed at minimising the cost of production. According to a notification issued here, the regulator following the policy guidelines of the Ministry of Petroleum and Natural Resources has cut natural gas prices for power houses by Rs 200 per unit, effective from December 15, 2016.
The decision will be effective on all the power producing units including K-Electric (KE). The authority has also reduced the gas tariff for fertilizer plants by Rs 0.41 per unit from Rs 123.41 to Rs 123 per unit. The authority has made no change in the gas tariff for domestic, commercial and industrial consumers. According to Petroleum Ministry officials, the reduction in gas price for power generation units is aimed at supplying cheap electricity to industrial sector across the country.

Copyright Business Recorder, 2016

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