ISLAMABAD: Gas prices to witness a major hike in Pakistan as the Oil and Gas Regulatory Authority (OGRA) has approved an increase for the current fiscal year, raising the average tariff by up to 7.14 per cent.
According to OGRA, gas prices for consumers in Islamabad, Punjab and Khyber Pakhtunkhwa have been increased by 4.89 per cent.
The authority has approved an upward revision of Rs 86.30 per MMBtu for Sui Northern Gas Pipelines Limited (SNGPL), setting the new price at Rs 1,852.80 per MMBtu, compared to the previous rate of Rs 1,766.50 per MMBtu.
For Sindh and Balochistan, OGRA has approved a 7.14 percent increase in gas prices. Sui Southern Gas Company (SSGC) has been allowed an increase of Rs 118.47 per MMBtu, bringing the new tariff to Rs 1,777.02 per MMBtu from the earlier rate of Rs 1,658.56 per MMBtu.
The development comes despite OGRA’s earlier indication of an average 8 per cent reduction in gas prices.
The regulator had previously stated that, based on the financial requirements submitted by gas utilities, tariffs for Islamabad, Punjab and KP consumers could be reduced by up to 3 per cent, while an 8 percent reduction had been proposed for consumers in Sindh and Balochistan.
Earlier, PM Shehbaz Sharif, while addressing a ceremony, stated that during the PDM government in 2022, gas supply remained a significant challenge, but the current administration has worked diligently to improve the situation.
He further said that from today, new connections of high-quality RLNG (Re-Gasified Liquefied Natural Gas) are being issued to the public.