ISLAMABAD: Consumers can expect a potential 50% increase in natural gas prices in Pakistan starting from July.
The Oil and Gas Regulatory Authority (Ogra) Friday concluded its determinations for two struggling state-run gas utilities and submitted them to the government for issuance of notification.
For the upcoming fiscal year 2023-24, Ogra has calculated an estimated revenue requirement (ERR) of Rs697.4 billion to be collected from gas consumers.
The Sui Northern Gas Pipeline Limited (SNGPL), responsible for gas supply to consumers in Punjab and Khyber-Pakhtunkhwa (KP), will collect Rs358.4 billion.
Meanwhile, the Sui Southern Gas Company (SSGC), which supplies gas to consumers in Sindh and Balochistan, will collect Rs339 billion.
The average prescribed price determined by Ogra for SNGPL stands at Rs1,238.68/mmBtu, reflecting a 50% increase or Rs415.11 compared to the existing price.
Similarly, the average prescribed price for SSGC is set at Rs1,350.68/mmBtu, representing a Rs417.23 increase or 45%.
Ogra clarified that the average prescribed price mainly consists of the cost of gas, which accounts for over 85% of the determined price.