OGRA yet to decide on gas price hike for FY24

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) announced on Saturday that it has not reached a decision regarding the proposed gas tariff increase for the fiscal year 2023–24, as requested by both major gas companies, Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC).

OGRA clarified that it has not recommended any adjustments to the gas tariffs for utility companies at this point in time.

The government, however, is under obligation to adhere to the International Monetary Fund (IMF) commitment, requiring an announcement and implementation of OGRA-recommended gas prices by February 18, as mandated by the recent amendment in the OGRA Ordinance.

In response to petitions filed by SNGPL and SSGC for revenue requirements, the OGRA conducted two public hearings in December 2023.

Contrary to recent media reports, OGRA denies making any formal recommendations for a substantial 41 per cent increase in gas prices.

Speculations are rife, suggesting that the government is awaiting approval for implementation in the coming month.

This potential hike comes on the heels of significant increases of up to 193 per cent and 112 per cent in gas prices during the last calendar year.

The most recent tariff restructuring, effective since November, has categorised domestic consumers into two distinct groups: non-protected and protected.

Non-protected consumers are those with an average consumption of 91 cubic metres, while those utilising less than 90 cubic metres fall under the protected category.

The situation remains fluid as stakeholders anxiously await OGRA’s final decision and the government’s subsequent action in line with the IMF commitments.

The looming possibility of a significant gas price hike raises concerns among consumers and industry players alike as they brace for potential economic repercussions in the coming months.

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