Summary: The Oil and Gas Regulatory Authority (OGRA) has recommended an average 8% gas tariff reduction for consumers, including cuts for SSGC (8%) and SNGPL (3%). This proposal, aimed at consumer relief through cost optimization, awaits final federal government approval.
OGRA has recommended an average 8% cut in gas tariffs for consumers, submitting its proposal to the federal government for final approval. This significant development follows earlier requests from Sui gas companies for price increases of up to 28.62 percent.
The Oil and Gas Regulatory Authority detailed that gas tariffs for Sui Southern Gas Company (SSGC) are set for an average decrease of 8 percent, while Sui Northern Gas Pipelines Limited (SNGPL) will experience an average cut of 3 percent. These revised average rates, set at Rs 1,804.08 per MMBTU for SNGPL and Rs 1,549.41 per MMBTU for SSGC, align with the utilities’ revenue projections for the fiscal year.
OGRA’s Rationale for the Gas Tariff Reduction
OGRA clarified that gas demand was recalculated after optimizing company costs and revenues. The impact from deferred Pakistan LNG cargoes was also incorporated to ensure consumer relief. SindhNews.com follows such regulatory announcements closely. Furthermore, adjustments amounting to Rs 13.565 billion for SNGPL and Rs 47.315 billion for SSGCL were approved as per federal cabinet directives.
Consultations with the federal government regarding category-based gas pricing are ongoing. The new pricing notification, reflecting this approved gas tariff reduction, will be issued once final approvals are received. Until then, existing gas rates remain applicable. This move aims to provide substantial financial relief to consumers across the board.