The Oil and Gas Regulatory Authority (OGRA) on Monday approved a reduction of up to 8% in gas tariffs for consumers nationwide, with the final decision resting with the government.
In a statement, the authority said that it has determined the Review of Estimated Revenue Requirement (RERR) of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited for the fiscal year 2025-26.
OGRA proposed revised tariffs of Rs1,804.08 per metric million British thermal unit (mmbtu) for SNGPL and Rs1,549.41/mmbtu for SSGCL, reflecting reductions of 3% and 8% respectively.
OGRA, in its statement, said that it approved the reduction after “carefully reviewing the revenue requirement of SNGPL and SSGCL” and “rationalised the demand by optimising costs as well as revenues”.
The impact of deferred cargoes in the case of Pakistan LNG Limited has been included to the benefit of gas consumers, it added.
“OGRA in pursuance of Federal Cabinet dated July 01, 2024 has adjusted Rs13,565 million in case of SNGPL and Rs47,315 million in case of SSGCL against previous shortfall/stock of gas circular debt,” the statement read.
Meanwhile, OGRA has requested the federal government for advice on category-wise sale prices, saying that any revision, as advised by the government, will be notified regarding the same.
Till such time, the existing category-wise natural gas sale prices will continue to prevail.
Separately, Minister for Petroleum Ali Pervez Malik directed gas utilities to ensure uninterrupted supply to consumers during winter.
During a meeting to discuss seasonal gas load management, the minister urged necessary measures to facilitate the public during the winter months.
Malik confirmed that gas companies had been issued the required instructions in this regard.
According to a statement, the managing directors of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) briefed the minister on gas availability across the country.
The meeting also reviewed the issuance of RLNG domestic connections, the statement added.
Malik noted that the domestic gas supply this year was “significantly better” compared to last winter.