IslamabadAfter the advice of the federal government, the Oil and Gas Regulatory Authority (OGRA) informed a review of the sale price of gas exclusively for the public industry category (captive), as of February 1, 2025.
According to OGRA, the federal government issued, while responding to the OGRA decisions for SNGPL and SSGCL for the estimated revenue requirements for the fiscal year 2024-25, advice on gas selling prices.
After the government’s advice, as of February 1, 2025, the price of the sale of gas to the public industry (captive) was reviewed from Rurawi. 3000/mmbtu to rupees. 3500/mmbtu.
However, the prices of all other consumer categories, including local tandooor, private, public industry (practical), commercial, compressed natural gas, cement, fertilizers, and energy, have not changed.
This review was officially published in the Official Gazette and is also available on OGRA. Earlier, Ogra recommended a significant increase in gas prices to the federal government to recover rupees. 847.33 billion during the current fiscal year and the increasing circular debt processing in the gas sector. The organizer suggested an increase of RS. 142.45 for each MMBTU for consumers Sui NortheRN GAS PIPENINes LIMITED (SNGPL) and RS. 361 for all MMBTU for consumers Sui Southern Gas Company Limited (SSGCL).
The recommendations set a fixed rate of rupees. 1,778.35 per mmbtu for consumers SNGPL, even from the current rupee. 1,635.90, and RS. 1,762.51 for SSGCL consumers, even from rupees. 1,401.25.
These amendments are equivalent to an 8.71 % increase for SNGPL consumers and up to 25.78 % for SSGCL consumers.
Under the amended OGRA, the federal government must issue consumer prices in the category without changing the total revenue requirements calculated by the regulator. Despite the OGRA proposal, the government has chosen to maintain the current prices of most consumer categories with the implementation of a targeted increase in the captive sector.
The public industry (the captive) means an industrial unit /the unit of implementation of energy production activity (with or without joint generation) for self -consumption and /or for sale from the surplus of energy for a distribution company or consumers of the wholesale power.
It is appropriate to mention that this price amendment reflects the ongoing efforts to balance the financial sustainability of the gas sector while reducing the burden on most consumer groups.
