The Oil and Gas Regulatory Authority (OGRA) has approved an increase of 7 percent in the price of liquefied petroleum gas (LPG) and a 22 percent hike in rates of natural gas.
The price hike was announced in two separate notifications on Friday.
The revised revenue targets for the current fiscal year has become a tough ask for the company, leading OGRA to increase the prices.
In order to meet the revenue requirements, the regulatory authority has also allowed an increase of Rs. 119.68 per unit to the prescribed prices of Sui Northern Gas Pipelines Limited (SNGPL) and Rs. 69.1 per unit to Sui Southern Gas Company Ltd (SSGCL).
The authority has also set the average prescribed price at Rs. 631 per MMBtu for gas companies.
This decision is aimed at achieving additional revenue of about Rs.75 billion for the two gas utilities – Rs. 50 billion for SNGPL and Rs. 25 billion for SSGCL.
In a separate decision, OGRA also jacked up the price of indigenous LPG by Rs. 9 per kg or Rs. 95 per 11.8 kg cylinder for the current month.
A notification was circulated on Friday in this regard. The notice highlights that the new price of the 11.8kg domestic cylinder would be Rs. 1,523.
Last month, the price of the domestic cylinder was Rs. 1,427.67, showing an increase of 6.69%.
This is the third consecutive rise in LPG rates in three months – OGRA blames it on rising international prices.