Ogra increases LNG prices for SSGC, lowers rates for SNGPL

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced a rise in imported LNG prices for Sui Southern Gas Company (SSGC) consumers, while prices for Sui Northern Gas Pipelines Limited (SNGPL) customers will see a reduction for January 2025.

For SSGC consumers, LNG prices have increased by $0.0468 per mmbtu, marking a 0.44 per cent rise compared to December 2024. The price for transmission has gone up from $10.5415 to $10.5883 per mmbtu, while the distribution price has increased from $12.5456 to $12.6014 per mmbtu, reflecting a 0.45 per cent increase.

In contrast, SNGPL customers will benefit from a price decrease. The transmission price has fallen by 1.98 per cent, dropping by $0.2371 per mmbtu, from $11.9659 to $11.7288 per mmbtu. Similarly, the distribution price has reduced from $12.8997 to $12.6667 per mmbtu.

The drop in SNGPL prices is attributed to a reduction in the price differential included in the RLNG sale price. On the other hand, the slight increase in SSGC prices is due to a modest rise in the delivered ex-ship (DES) price.

LPG price reduction

About a week ago, the Oil and Gas Regulatory Authority (OGRA) announced a reduction in liquefied petroleum gas (LPG) prices, cutting the rate by Rs4 per kilogramme for January 2025. The new prices, which took effect on January 1, apply to both domestic and commercial consumers.

The price of an 11.8-kilogramme domestic LPG cylinder has been reduced to Rs2,953, down from Rs3,001. Similarly, the price of a 45.4-kilogramme commercial cylinder has been lowered by Rs182, bringing it down to Rs11,363 from the previous Rs11,545.

OGRA also revealed a drop in LPG production costs, which have decreased by Rs4,020 per metric ton. However, despite the official price cuts, reports suggest that LPG is still being sold for over Rs300 per kilogramme in various regions, including Islamabad.

This has raised concerns over OGRA’s ability to effectively enforce the new prices in the market.

According to OGRA, the LPG producer price is impacted by changes in the Saudi Aramco Contract Price (CP) and the US dollar exchange rate.

The Saudi Aramco CP reportedly dropped by 2 per cent compared to the previous month, while the average exchange rate rose slightly by 0.12 per cent. These factors led to a reduction of Rs47.43, or 1.58 per cent, in the price of an 11.8-kilogramme domestic cylinder.

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