Ogra withdraws LNG price hike notification

The Oil and Gas Regulatory Authority (Ogra) on Tuesday withdrew the notification of an increase in the prices of Liquefied Natural Gas (LNG) issued yesterday, reported 24NewsHD TV channel. 

With the withdrawal of the LNG price hike notification by Ogra, the prices of CNG also came down on Aug 1 position.  

Earlier, the increase in the LNG gas rate resulted in the upward trend in the Compressed Natural Gas (CNG) prices as the gas rates were increased by Rs5 per kg in Punjab and Rs8 per kg in Sindh Tuesday.

Last week, the government has bought expensive LNG from the spot market at $15 per mmBtu for September 2021 to avoid power blackouts. It is the highest price since the country began the LNG imports in 2015. 

The costly LNG started showing its adverse impact on the prices of CNG as Punjab hiked the commodity price by Rs5 per litre and Sindh by Rs8 per kilo. 

The CNG Association was expected to announce the surge in the prices later today (Tuesday) but abstained from doing so following Ogra’s decision regarding the withdrawal of the LNG price hike notification.

Earlier, CNG Association leader Giyas Paracha said that Pakistan State Oil purchased a cargo of LNG from the spot market at the rate of $20 per mmBtu. “The PLL has bought the LNG cargo from the spot market at exorbitant rates,” he added. 

Mr Paracha was of the view that the price of LNG has raised in the international market. He also said that the depreciation of the Pakistani rupee against the US dollar was also responsible for the present hike in the CNG prices. 

Reporter Awais Kiyani