OGRA notifies hike in gas tariff for captive power plants

Oil and Gas Regulatory Authority (OGRA) has issued notification of increase in gas tariff for captive power plants, reported 24NewsHDTV channel. 

According to a notification, 3,500 rupees per mmbtu gas price has been increased for captive power plants. The new rates will be implemented from February 1, 2025. 

OGRA made it clear that gas prices was not increased for commercial tandoor and domestic customers. Gas price was not hiked for CNG stations, fertilizers and power and cement sector. Earlier, Economic Coordination Committee (ECC) of the federal cabinet approved gas tariff hike for the industrial sector. The decision was made during a meeting chaired by Federal Minister for Finance, Mohammad Aurangzeb, as per an official statement from the Ministry of Finance.

The ECC deliberated on the Petroleum Ministry's proposal to raise gas tariffs for captive power plants and non-protected domestic consumers. After careful consideration, the committee approved the increase in gas tariffs for captive power plants in a bid to secure the required revenue for the gas sector during the fiscal year 2024-25. As per the approved rates, gas tariffs for captive power plants have been raised from Rs 3,000 to Rs 3,500 per MMBTU. The committee, however, decided to keep gas prices unchanged for domestic consumers to avoid placing an additional financial burden on them.