ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Friday notified a decrease of 33.34 percent or Rs200.13 per MMBTU in the prices of gas for WAPDA and Independent Power producers (IPPs).
The authority also notified a decrease of 34 percent in the prices of fertilizer sector feed stock. However, the prices of all the other categories will stay the same.
Following the federal government’s advice to reduce the prices of WAPDA, IPPS, and fertilizer sector Feed Stocks, OGRA has notified the new prices for consumers of both the gas utilities of Sui Northern Gas Pipeline Limited(SNGPL) and Sui Southern Gas Company Limited (SSGC).
Earlier, the federal government, under section 8(3) of OGRA Ordinance 2002, had advised Oil and Gas Regulatory Authority the gas sale prices under each category of consumers of both the gas utilities of Sui Northern Gas Pipeline Limited(SNGPL) and Sui Southern Gas Company Limited (SSGC) w.e.f 15 December 2016.
In the revised gas sale prices, the gas rates in respect of ‘Power’ has been reduced from Rs 600.13 per MMBTU to Rs 400 per MMBTU. In respect of Fertilizer sector feed stock, it has been reduced from Rs 123.41 to MMBTU to Rs 123 per MMBTU.
However no change in gas sale prices in respect of all other categories of consumers (domestic, commercial and Industrial) has been advised.
Power generation entities are going to be the biggest beneficiaries of the government decision of decreasing the gas prices.
Earlier in a public hearing of tariff petitions, filed by the Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited, Ogra recommended an increase of Rs57.89 per unit (MMBTU) for SNGPL for the financial year 2016-17. On the other hand SSGCL had sought an increase of Rs16 per unit in the average prescribed price of Rs419 per unit to take it to Rs435. Ogra determined a reduction of Rs65.12 per unit price in the prescribed price of the SSGCL. However the reduction will not benefit SSGCL consumers as under a policy the government is maintaining a uniform gas price across the country. The difference between sale and prescribed price will go to Gas Development Surcharge (GDS) and will be divided among the provinces.
