Islamabad: Ogra has increased the gas prices from January 1, which has been increased by 8.57 percent for Sui Southern and 35.13 percent for Sui Northern, through which the deficit of 98 billion rupees will be met.
According to the details, in another shock to the gas consumers who have been receiving huge and unaffordable bills, the Oil and Gas Regulatory Authority (Ogra) has closed Sui Northern’s gas supply from January 1, 2024, to meet a deficit of Rs 98 billion by June 30, 2024. The price increased by 35.13% and Sui Southern gas price by 8.57%.
Gas prices will have to be hiked again to stop the increase in revolving debt: Caretaker Finance Minister
This is the second increase in gas prices in the current financial year 2023-24, with the regulator fixing the average price of gas at Rs 1,291 per MMBtu on February 2, 2024, which was earlier fixed on June 2, 2023. , had recommended an average increase of 23.16% to Rs.1590 per mmbtu.
The IMF has already asked the government to implement the gas review process in two years to reduce the stock of revolving credit in the domestic gas sector, which currently stands at Rs 1,250 billion.
Ogra is bound to announce gas prices every two years, the government is bound to implement gas prices from July 1 and then January 1 in any current financial year.
As per OGRA’s decisions uploaded on its official website on February 2, 2024, the price of Sui Northern Gas has increased to Rs 1673.82 per mmbtu as against the earlier fixed price of Rs 1238.68 per mmbtu on June 2, 2023.
Similarly, the regulator has increased the gas price of Sui Southern from Rs 1350.68 per mmbtu to Rs 1466.40 per mmbtu.
A senior official said this is based on the determination of gas prices to be effective from January 1, 2024, as opposed to the earlier determination which was to come into force from July 1 in the same financial year 2023-24.