The government has approved Oil and Gas Regulatory Authority’s (Ogra) recommendation to increase rates for natural gas by 46% on average. On Tuesday, petroleum division was ordered to take measures to curb gas theft, which amounts to Rs 50 billion on an annual basis.
The new government’s move came after two utility companies – Sui Southern Gas Company (SSGP) and Sui Northern Gas Pipelines (SNGP) – requested the government to implement the increase in gas price so that they could cover their deficits.
The companies informed that:
A briefing on the gas sector was presided by the Prime Minister himself. He was briefed about the current situation regarding the supply and demand in the country’s oil and gas sector by Additional Secretary in charge of petroleum division Mian Asad Hayauddin.
PM Khan was told that constant changing, as well as non-implementation of oil and gas sector policies, has turned investors away. No exploration blocks were awarded during the last five years. PM Khan ordered that a comprehensive plan be drawn up to contest these issues.
He was also briefed about the steps required to rationalize the selling prices in the gas sector particularly. During this meeting, he asked for the statistics, as determined by OGRA, to be approved by the forum.
Before the first meeting of the Economic Coordination Committee (ECC) occurred last week, a summary for an increase in the gas tariff was placed in front of Federal Minister for Finance, Asad Umar. Mr Umar stated that it should be moved ahead for a decision after the approval of the prime minister.
Hence, an improved version of the summary will be put on the table in the next ECC meeting for approval. Then, a formal notification will be issued for a consumer-end gas price after taking the federal cabinet in confidence.
Here are the new approved gas rates: