Another gas price hike to burden people by Rs98bn

Islamabad: Oil and Gas Regulatory Authority (OGRA) has increased the gas prices from January 1, which has been increased by 8.57% for Sui Southern and 35.13% for Sui Northern, through which the deficit of 98 billion Rs will be met.

According to the details, in another shock to the gas consumers who have been receiving huge and unaffordable bills, Ogra has closed Sui Northern's gas supply from January 1, to meet a deficit of Rs98 billion by June 30, 2024.

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 regulatory has increased the gas price of Sui Southern from Rs 1350.68 per mmbtu to Rs 1466.40 per mmbtu.