Islamabad June 4 2022: Gas prices for the consumers depended on system gas, produced within the country, are expected to increase by 45 percent from the next month to meet the IMF conditionally of zero subsidy on fuel prices in order to resume IMF program.
Oil and Gas Regulatory Authority, the main body that control pricing of gas and oil, has determined the Estimated Revenue Requirement of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) for the fiscal year 2022-23.
Both the determinations have been sent to Federal Government for receipt of category wise natural gas sale price advice.
IMF in a statement at the conclusion of talks with Pakistan stressed for taking concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve program objectives.
Increase in petroleum and electricity prices will help to narrow divergence and corrections required in the current account and fiscal deficit identified during the meetings.
As per the summary, OGRA has determined an increase of Rs 266.58 per MMBTU or 45% in tarrif of SNGPL from July 1st of upcoming fiscal year. The existing tariff of SNGP is Rs 587.93 per MMBTU. This will increase the average selling price of SNGPL to Rs 854.52 per MMBTU.
However, this calculation for SNGP does not include previous year impact of Rs 264.894 billion which is equivalent to Rs 720.20 per MMBTU. The decision of passing this backlog has been referred to Federal Government for an appropriate policy decision and is therefore, not made part of this instant determination.
As per the summary, OGRA has determined an increase of Rs 308.53 per MMBTU or 44% in tarrif of SSGC from July 1st of upcoming fiscal year. The existing tariff of SSGC is Rs 699.29 per MMBTU. This will increase the average selling price of SSGC to Rs 1,007.82 per MMBTU.
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