OGRA determines new gas tariff with 6% decrease on SNGPL, 2% SSGC networks, July 13, 2020
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ISLAMABAD-The Oil and Gas Regulatory Authority (OGRA) on Tuesday determined the revenue requirement of two state-owned gas companies, SNGPL and SSGC, decreasing the commodity tariff by 6 percent and 2 percent respectively for the Fiscal Year 2020-21.
The authority, under Section 8(1) of OGRA Ordinance, 2002, had determined the revenue requirement of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) and “sent the same to the Federal Government for gas sale price advice in respect of each category of consumers under Section 8(3) of the said Ordinance,” OGRA Spokesman Imran Ghaznavi said in a press statement.
The SNGPL had demanded to fix the tariff at Rs 1287.19 per Million British Thermal Unit (MMBTU) against the existing price of Rs 664.25 per MMBTU, he said, adding the authority approved the rate of Rs 623.31 per MMBTU, which was “106.5 % less than the demand and 6% less than the existing price.”
Whereas, the SSGC had asked for the commodity tariff of Rs 881.53 per MMBU against the existing price of Rs 796.18 per MMBTU, but OGRA allowed Rs 750.18 per MMBTU for the current fiscal year, which was “17.4% less than the demand and 2% less than the existing price,” Ghaznavi said.
The authority, he said, had significantly slashed the gas companies’ demand for increase in gas prices mainly “due to reduction in international oil prices along with other disallowances made by OGRA in respect of revenue & capital expenditures.
