The government has reduced the prices of re-gasified liquefied natural gas (RLNG) by 21.63% or $2.0729/mmbtu for Sui Northern Gas Company (SNGPL) and 18.9% or 1.8061/mmbtu for end consumers of the Sui Southern Gas Company (SSGC) for May.
According to the notification issued by the Oil and Gas Regulatory Authority (OGRA), the RLNG prices were decreased for the consumers of both the state owned gas distribution companies for the month of May.
Due to the lockdown in the country with significant reduction in the international prices of Brent Oil, the prices of RLNG also witnessed a sharp decline.
The Oil and Gas Regulatory Authority (Ogra) has set new prices at $7.5105 per mmbtu for the consumers of the SNGPL and $7.7521 per mmbtu for the SSGC consumers. During the month of April, $9.5834 per mmbtu was fixed for the consumers of SNGPL, and $9.5582 per mmbtu, for SSGC.
Per liter price of CNG will also be reduced in Punjab at the same proportion where RLNG is used in CNG stations.
The Oil and Gas Regulatory Authority (OGRA) notified the new RLNG monthly prices, which is based on 8 RLNG cargos import by the Pakistan State Oil (PSO) and the Pakistan LNG Limited (PLL). The calculation of April month was based on seven cargoes of RLNG.
It is worth mentioning that RLNG is the major contributor to power generation after hydel sources, so with the decline of the RLNG prices, the cost of energy will also reduce and the benefit is likely to be passed on to power consumers.
The reduction in imported gas prices will have a very positive impact on reducing inflationary pressure in the economy with benefits to the domestic and industrial sectors as well.