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OGRA issues gas price revision notification

By News Desk

November 8, 2023 06:25 PM


Oil and Gas Regulatory Authority (OGRA) on Wednesday issued a notification of gas sale prices for domestic, commercial, and industrial sectors, which would be effective from November 1, reported the 24NewsHD TV channel.

It is pertinent that the federal government under sections 7(1) 8(3) and 21(2) (h) of the OGRA Ordinance, 2002 advised the revised category-wise natural gas sale prices to OGRA for notification.

The federal government has the sole jurisdiction to fix sale prices for different categories of consumers of natural gas considering socio-economic agenda and sectoral policies while adjusting cross-subsidy and gas development surcharge.

However, the federal government has to face a legal glitch in the implementation of the recently announced up to 193pc increase in gas tariff as it has not shared its decision in this regard with the Oil and Gas Regulatory Authority (OGRA), which is the final authority for notifying the revised rates.

The government's decision to gas price hike has no legal standing without OGRA's notification. The Government had approved a hike from 29 percent to 172 percent for domestic gas consumers, up to 193.33 percent for Industries, and a hike of 100 percent for the CNG sector effective November 1.

To avoid further embarrassment, the government requested the OGRA to issue a notification immediately. So, following the policy guidelines of the federal government, OGRA notified the natural gas sale prices effective from November 1.

The new prices have been notified by OGRA in the official gazette and are also placed on OGRA website (www.ogra.org.pk).

On the other hand, the government is mulling a plan to amend the OGRA ordinance to empower regulators in gas pricing.

Under the proposed changes, OGRA will be responsible for setting gas prices after consulting with stakeholders.

The federal government has instructed the Petroleum Division to draft a policy proposal aimed at amending the OGRA Ordinance 2002, which would grant the regulatory authority the power to determine and officially announce gas prices in the future.

Under the proposed changes, OGRA would be responsible for setting gas prices after consulting with stakeholders, and an appeals process would be established for parties seeking a review of the prices set.

The Petroleum Division will be tasked with presenting a policy proposal to the Cabinet Division, following standard procedures.

 

 


News Desk


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