The Oil and Gas Regulatory Authority (OGRA) has notified a drop of up to 2.4 percent in Regassified Liquified Natural Gas (RLNG) for gas distribution companies in November 2022.
According to the new rates, the maximum RLNG prices notified for Sui Southern Gas Company decreased to $14.8 per mmbtu in November as compared to $15.1 per mmbtu reported in October, showing a 2.47 percent or $0.3 per mmbtu drop.
Moreover, the maximum RLNG prices notified for Sui Northern Gas Pipelines Limited decreased to $14.4 mmbtu in November as compared to $14.7 per mmbtu reported in October, depicting a drop of 2.3 percent or $0.3 per mmbtu.
The decrease in prices reflects the downward trend in the international market amid fears of a global recession. The strengthening of the local currency against the dollar has also had a slight impact on the RLNG prices in the domestic market.
The downward trend in the local market is likely to provide relief to commercial and domestic sectors. The cost of electricity may also reduce as the power-producing companies pass on the impact of the declining RLNG prices.
In March 2022, the average RLNG prices in the local market stood at $25.12 per mmbtu in tandem with the inflated trend in the global market.
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