35.12% further hike in gas tariff approved

The Oil and Gas Regularly Authority (OGRA) has approved 35.12 percent further hike in the gas tariff to overcome a shortfall of Rs98 billion.

The new tariff will be applicable from January 1, 2024 till June 30, 2024, reported 24NewsHD TV channel on Tuesday.

This is the second time that the government has revised upwards the gas price in the current financial year 2023-24.

The OGRA sent the summary of the decision to the federal government for final approval. The notification will be issued after the approval by the federal government.

For gas consumers of Punjab, KP including Islamabad, an average increase of 35.13 percent in tariff was approved. While for the consumers of Sindh and Balochistan, tariff was increased 8.57 percent.

The government also jacked up the tariff of Sui Northern Gas Pipelines Limited (SNGPL) by 35.13 percent and Sui Southern Gas Company Limited (SSGCL) by 8.57pc.

On February 2, Ogra suggested an increase of Rs299 in the average gas price to Rs1,590 per MMBTU from the previous average price of Rs1,291, which was determined in June 2023. The IMF has asked the government to review the gas prices biannually to reduce the circular debt.

According to OGRA’s Feb 2 decision, the tariff of Sui Northern gas surged to Rs1,673.82 per MMBTU against the previous price of Rs1,238.68. Similarly, it has increased the gas tariff of Sui Southern to Rs1,466.40 per MMBTU from Rs1,350.68 per MMBTU.

Reporter Awais Kiyani