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Tuesday, June 18, 2024  
11 Dhul-Hijjah 1445  

No gas price increase before July, assures OGRA chairman

SNGPL's demands could raise bills by 15%
File photo
File photo

While the Oil and Gas Regulatory Authority deliberates whether to increase gas prices, the Authority’s Chairman Masoor Khan has announced that no price increase will be implemented before July 1.

OGRA will decide whether to increase gas prices for Sui Northern Gas Pipeline’s consumers.

SNGPL has asked for gas prices to be raised to Rs4,489/MMBTU.

If OGRA approves the demand, the price hike will lead to a average of 15% increase in the price of bills.

Prices of gas have already been raised 600% inside a single year.

However, Masroor told reporters that the price increase will not necessarily be as high as reported.

He added that the price hikes are a necessity as Pakistan’s reserves are rapidly depleting.

Both gas companies are facing massive revenue shortfalls if revenues are not icreased. SNGPL has projected losses of Rs189 billion while SSGC has projected losses of Rs46 billion.

The prices of gas have already been increased twice in the current fiscal year. Prices were increased by nearly 200 percent in November and another 67 percent in February.

This story is being updated.